Russian Federation - Ozone Depleting Substance Consumption Phase-out Project

GLOBAL ENVIRONMENT FACILITY * -~t - /53246 Russian Federation - . Ozone Depleting SubstancedConsumption Phase-out Project Project Document >May 1996 THE WORLD BANK.  GEF Documentation The Global Environment Facility (GEF) assists developing countries to protect the global environment in four areas:.global warming. pollution of international waters, destruction of biodiversity, and depletion of the ozone layer. The GEF is jointly implemented bythe United Nations Development Programme.the United Nations Environment Programme. and the World Bank. GEF Project Documents - identified by a green band - provide extended project- specific information. The implementing agency responsible for each project is identified by its logo on the cover of the document. Global Environment Division Environment Department World Bank 1818 H Street, NW Washington. DC 20433 Telephone: (202) 473-1816 Fax: (202) 522-3256  Report No. 15326-RU Russian Federation Ozone Depleting Substance Consumption Phase-Out Project Project Document May 1996 Infrastructure, Energy and Environment Division Country Department III Europe and Central Asia Region  CURRENCY EQUIVALENT (Figures are as of end of month) Currency Unit = Ruble (RB) Rubles US Dollar December 1991 169 December 1992 415 December 1993 1,247 December 1994 3,550 December 1995 4,640 Grantee's Fiscal Year January I - December 31 WEIGHTS AND MEASURES CONVERSIONS Metric System US System 1 meter (m) = 3.2808 feet I kilometer (km) = 0.6214 mile 1 square meter (m2) 1. 196 square yards I metric ton (ton) = 1.102 short tons ACRONYMS AND ABBREVIATIONS CFC Chlorofluorocarbon MEPNR Ministry of Environmental Protection and Natural Resources CPPI Center for Project Preparation and MFMP Multilateral Fund for the Implementation Implementation of the Montreal Protocol CTC Carbon Tetrachloride MLN Million EA Environmental Assessment MP Montreal Protocol on Substances that Deplete the Ozone Layer EMP Environmental Management MT Metric Ton Project FSU Former Soviet Union NPAF National Pollution Abatement Facility HAP Hydrocarbon Aerosol Propellant ODP Ozone Depleting Potential HCFC Hydrochlorofluorocarbon ODS Ozone Depleting Substances HFC Hydrofluorocarbon ODS Ozone Depleting Substances Phase- PIU Out Implementation Unit GEF Global Environmental Facility OORG Ozone Operations Resource Group GET Global Environmental Trust Fund OTF Ozone Projects Trust Fund ICB International Competitive Bidding PPA Project Preparation Advance IS International Shopping SA Special Account LPG Liquefied Petroleum Gas STAP Scientific and Technical Advisory Panel MCF Methyl Chloroform TA Technical Assistance  RUSSIAN FEDERATION OZONE DEPLETING SUBSTANCE CONSUMPTION PHASE-OUT PROJECT TABLE OF CONTENTS PART 1: PROJECT SUMMA1ZY I. Country Sector Background ...1......................... II. ODS Phase-Out Strategy ...........................3 III. Project Objective ...........................5 IV. Project Description ............................5 V. Project Cost and Financing ...9........................9 VI. Project Implementation Arrangements ........................... 11 VII. Project Sustainability ........................... 14 VIII. Lessons from Previous Bank Experience .14 IX. Rationale for Bank and GEF Involvement .15 X. Project Benefits .17 XI. Project Risks and Mitigation Measures .17 XII. Environmental Aspects .18 XIII. Actions to be Agreed .19 Schedule A Project Costs and Financing Plan Schedule B Procurement and Disbursement Arrangements Schedule C Key Project Processing Events Schedule D Status of Bank Group Operations in the Russian Federation PART 2: TECHNICAL ANNEXES Annex 1 Project Implementation Responsibilities Annex 2 Technical Annex: Part I - Aerosol and Refrigeration Sector Background Technical Annex: Part 2 - First Tranche Sub-project Descriptions Technical Annex: Part 3 - Second and Third Tranche Sub-projects Technical Annex: Part 4 - Technical Assistance Component Annex 3 Russian Federation ODS Phase-Out Strategy and Policy Commitments Annex 4 Sub-Project Selection Criteria MAP IBRD No. 27740   PART 1: PROJECT SUMMARY   RUSSIAN FEDERATION OZONE DEPLETING SUBSTANCES CONSUMPTION PHASE-OUT PROJECT GRANT AND PROJECT SUMMARY Recipient: Russian Federation Executing Agency: Ministry of Environmental Protection and Natural Resources (MEPNR) Beneficiaries: MEPNR and Enterprises using Ozone Depleting Substances Project Tranche 1 (US$ million) (US$ million) Financing Plan: Enterprise 44.3 12.7 Contribution GEF Grant 60.0 8.6 On lending Terms: Grant Economic Rate of Return: N/A Poverty Category: N/A 1 Incremental capital investments exclusive of incremental operating cost.   - 1 - RUSSIAN FEDERATION OZONE DEPLETING SUBSTANCES CONSUMPTION PHASE-OUT PROJECT l. COUNTRY SECTOR BACKGROUND 1. General recognition of upper atmosphere ozone depletion and its global impacts in the mid-1980's has led to a substantial international effort in phasing out various substances that deplete 2 stratospheric ozone . This effort includes the Vienna Convention for the Protection of the Ozone Layer (1985) and the Montreal Protocol on Substances that Deplete the Ozone Layer (1987) (MP). Ozone Depleting Substances (ODS) whose production and use is regulated by the MP include chlorofluorocarbons (CFCs), halons, several halogenated solvents, and a class of transitional chemicals known as hydrochlorofluorocarbons (HCFCs). The MP has been ratified by more than 150 countries accounting for over 95 per cent of global consumption of ODS. It initially set 2000 as the target phase-out date for developed countries and gave a 10-year grace period for developing countries. Further recognition that ozone depletion is occurring more rapidly than first anticipated has led to two protocol amendments which add regulated materials and accelerate phase-out. The London Amendment in June, 1990 added the two solvents, methyl chloroform (MCF) and carbon tetrachloride (CTC), as well as tightening the phase-out schedule. The Copenhagen Amendment in November, 1992 further accelerated phase-out and added transitional substitute materials (HCFCs) and methyl bromide as regulated substances. The current developed country phase-out date for CFCs, MCF, and CTC was January 1996 and January 1994 for halons. Production levels of HCFCS were frozen as of January 1996 with progressive reduction to phase-out in 2030. 2. Most developed countries have made good progress in eliminating ODS. New consumption phase-out should have been effectively completed by the January, 1996 deadline. Progress in developing countries is also progressing and many countries will likely be phased out by about 2000. Complete phase-out in India and China, the major developing country producers and consumers of ODS, will extend beyond this date, but should occur ahead of the current developing world deadline of 2010. The only major producers and consumers of ODS making slow progress toward ODS phase-out are the countries of the Former Soviet Union (FSU). The FSU ratified the MP in November, 1988 as a developed country. The Russian Federation continues the FSU membership in the Protocol and ratified the London Amendments in January, 1992. However, ratification of the Copenhagen Amendments has not occurred. Based on its ratification 2 The ozone layer forms a thin shield in the stratosphere protecting flora and fauna from the sun's harmful ultra violet radiation. Ozone layer thinning can cause impacts such as increased skin cancer incidence, eye cataracts, decreased plant productivity, and deterioration of the marine food chain. CFCs and other similar chlorinated chemicals widely used in refrigeration, foam blowing, aerosol sprays, industrial solvents and fire protection were found to be causing ozone layer destruction. These chemicals also have significant global warming potential.  status as a developed country under the MP, Russia's obligations for ODS phase-out are in accordance with the accelerated developed country schedule (halons - January 1994, and CFC, CTC and MTC - January 1996). This status also carries a requirement for contributions to the Multilateral Fund for the Implementation of the Montreal Protocol (MFMP), which has been created to provide financial support to eligible developing countries in meeting their MP obligations. Furthermore, Russia is obligated to stop exports of ODS to countries which are not parties to the MP. Russia is the sole producer of ODS among the countries of the FSU, although feedstocks in the form of CTC is supplied to Russian CFC producers from Ukraine. In effect, the republics of the FSU are currently dependent on Russian supplies, such as essential coolants for refrigeration and air conditioning equipment. Of these countries, Belarus, Ukraine, Uzbekistan and Turkmenistan are the only ones to have ratified the MP and only Turkmenistan has ratified the London Amendment 3. Russia is one of the world's largest producers and consumers of ODS. In 1990 when production peaked, it was estimated that 198,000 MT was produced, accounting for between 15 - 20% of world production. In 1992, Russian ODS production had fallen by 26% to 146,500 MT (including 21,000 MT HCFC and 59,000 MT CTC). This production supplies 100% of the domestic market, as well as the requirements of the countries of the FSU, and other export markets that continue to exist. Russian domestic consumption also peaked in 1990 at approximately 70,000 MT and had fallen in 1992 by 40% to 48,365 MT (equivalent to 44,114 MT ozone depleting potential (ODP) ) which amounts to an annual ODP weighted per capita consumption of 0.3 kg. Based on 1992 data, five sectors account for Russia's ODS use: aerosols (46%), refrigeration and air-conditioning (27%), fire protection (14%), foams (11%) and solvents (2%). Current data on ODS production and consumption are not complied in a consolidated form, but it is apparent that reductions in ODS consumption and production continue to occur. This is primarily due to the current economic conditions and to voluntary conversions that are occurring in the aerosol and refrigeration sectors, where limited progress has been made in committing the investments in technological change necessary to sustain phase-out. However, it is also observed that ODS consumption is starting to increase among some consumers in the aerosol and refrigeration sectors. Uncontrolled exports of ODS materials originating in Russia is also becoming an issue of concern In summary, the current developed country phase-out time table as mandated by the MP is unrealistic for Russia and it will not be able to meet its MP phase-out obligations.  - 3 - H. ODS PHASE-OUT STRATEGY 5. Development of an ODS Phase-Out Country Program describing an achievable phase-out program was completed in August 1994 with Danish support and Bank input. Assuming international financial assistance is available, the Country Program targets ODS phase-out for 1999, somewhat ahead of the London Amendment schedule (January 2000), but slower than the Copenhagen Amendment schedule (January 1996). Production would be phased out consistent with domestic consumption phase-out schedules, and phase-out in countries of the FSU to which Russia is the sole supplier, particularly Ukraine and Belarus. GEF-funded Project preparation work in the aerosol and refrigeration sectors has identified a wide range of candidate sub-projects, from which those included in this Project have been selected. Bilaterally funded Project preparation work is underway in the solvent, foam and fire protection sectors, and is being considered in the refrigeration servicing sector. The Bank is also developing a production phase-out project directed at consolidation and closure of Russian ODS producing facilities, along with development of ODS substitute production. 6. A position paper summarizing the Russian Country Program and phase-out strategy has been prepared by the Ministry of Enviromnental Protection and Natural Resources (MEPNR) and was submitted to the May 1995 meeting of the Parties to the Montreal Protocol (the Parties). This Country Program has since been formally adopted by the government with the issuing of a Government Resolution that provides a legal basis for its implementation. While considered in compliance with the control measures of the MP in 1995, Russia has acknowledged that it will be in a non-compliance position beginning in 1996 and has conveyed its commitment to ODS phase- out as set out in the Country program to the Secretariat of the Vienna Convention and Montreal Protocol. It has also resumed formal reporting of ODS consumption, production and trade as required under its obligations to the MP. At the November 1995 meeting of the Parties, Russia agreed to provide additional information relating to the country's political commitment, implementation progress, and enforcement measures, particularly in regard to trade regulations. An agreement was also reached between Russia and the Parties on issues associated with exports. Russia's export of ODS to other supply dependent countries in the FSU after January, 1996 would be accommodated on a transitional basis, conditional on it also taking the necessary action to ensure no re-export takes place from these countries. Russia has agreed to comply fully with the overall export ban requirements of the MP to other countries.  7. Following the meeting of the parties to the MP in Vienna in November 1995, and pursuant to the letter dated January 5, 1996 from the Ozone Secretariat, Russia provided the following information: a) confirTn the political commitment on the phase-out plan for ozone depleting substances by the Russian Federation; b) Define necessary linkages between the sectoral approach outlined by the Russian Federation in its submission and the specific requirements for the financial, institutional and administrative arrangements towards the implementation of such measures; c) Outline the gradual achievement of the proposed phase-out plan; and d) Define the proposed measures for the enforcement of the phase-out plan; in particular the enforcement of the trade regulations. 8. Russia is expected to be a developed country contributor to the Multilateral Fund for the Implementation of the Montreal Protocol (MFMP). While no contributions have been made to date, the Russian Government has undertaken to resolve its current arrears position and fully address its obligations when its economic conditions improve. Annex 3 contains the Country Program position paper, and Government Resolution confirming adoption of the country program phase-out strategy. 9. Russia has established the basic institutional structure to support the implementation of the proposed ODS phase-out program as defined in the Country Program. An Inter-Agency C*ommission for the phase-out of ODS has been created to coordinate ODS policy among all relevant government agencies utilizing specific subcomrnissions dealing with legal, technical, economic/institutional, and monitoring aspects. Responsibility for ODS phase-out activities has been assigned to the Ministry of Environmental Protection and Natural Protection (MEPNR). Initially an ODS Task Force was established by ministerial decree within the MEPNR, to act as Secretariat of the Commission. Subsequently this role along with overall implementation responsibility for both institutional and investment aspects of the Country Program have been assigned to the Center for Project Preparation and Implementation (CPPI). 10. In order to support the Country Program, substantial investment in replacement facilities and technology is required for conversion from ODS use and production of non-ODS substitutes. Additional costs and associated social impacts will be incurred with the shutdown of the country's substantial ODS production capability. Russia will require substantial external financial assistance to undertake investments for ODS phase-out as outlined in the Country Program. As a developed country signatory to the MP, it is not eligible for assistance from the MFMP. However, it is eligible for Global Environmnental Facility (GEF) funding, for which the Bank acts as an implementing agency.  - 5 - III. PROJECT OBJECTIVE 11. The overall objective of the Project is to assist Russia in the phase-out of ODS consumption, in a manner consistent with international efforts in the field, while ensuring that this is accomplished with the minimum of economic dislocation. The Project's more specific objectives are: i) to allow Russia to credibly initiate meeting its ODS consumption phase-out obligations under the MP within a realistic time frarne; ii) to facilitate access to financial resources needed for ODS consumption phase-out from a range of international and domestic sources; iii) to provide necessary technical assistance and institutional strengthening; iv) to fund enterprise specific investrnents in critical high consumption sectors; and v) to ensure that ODS phase-out activities accommodate economic and social impacts that may result. IV. PROJECT DESCRIPTION 12. This Project is the first GEF funding operation for ODS phase-out in Russia. It targets priority ODS consumption phase-out activities in the aerosol and refrigeration sectors, along with the provision of modest technical assistance at both the institutional and enterprise levels to facilitate and accelerate Country Prograrn implementation. It is structured as a framework project for a total GEF grant amount of US$60.0 million. The Project consist of: (i) an investment component to finance some 21 sub-projects for ODS phase-out in the aerosol and refrigeration sectors amounting to a total grant of US$ 57 million; (ii) a technical assistance component to strengthen project implementation and institutional capacity (US$ 1.3 million); and (iii) a sub-grant processing component (US$ 1.7 million). The proposed investment sub-projects are summarized in Schedule A - Table Al, along with their cost estimates. The total capital investment for these sub- projects is US$101.3 million. The individual sub-projects have been selected by the MEPNR with World Bank assistance from those candidate sub-projects in the aerosol and refrigeration sectors identified through work undertaken under a GEF Project Preparation Advance. The agreed criteria for their selection and prioritization is provided in Annex 4. The selected sub-projects have been reviewed and approved as suitable for appraisal by the Ozone Operations Resource Group (OORG) established under the MFMP to provide technical advice on technology selection. 13. The framework Project will be processed in three tranches as funds are approved by the GEF Council. The first tranche3 (US$8.6 million) covers two investment sub-projects, one in each of the aerosol (US$5.65 million) and refrigeration (US$1.976 million) sectors, as well as a technical assistance (TA) component (US$ 0.748 million) designed to strengthen Project implementation and institutional capability, and a sub-grant processing component (US$0.226 million). The first 3 The first tranche was approved by the GEF Council in May 1995, on the basis of two aerosol sector sub-projects (JSC Arnest and JSC Halogen). However, prior to appraisal JSC Halogen indicated they were not ready for appraisal of their project. As a consequence, a well prepared refrigeration sector sub-project at JSC Krasnoyarsk Refrigerator Plant has been substituted.  - 6 - tranche was approved by the GEF Council in May 1995. Appraisal of the first tranche investment sub-projects and the TA component was completed in November 1995. The second tranche (US$35.0 million) covers six remaining aerosol and five representative refrigeration sub-projects. This tranche was approved by the GEF Council in April 1996. The third tranche (US$16.4 million) will cover all remaining domestic refrigeration sub-projects and an initial refrigeration servicing sub-project. These will be proposed for GEF Council approval once implementation of the first two tranche sub-projects have been initiated. The Project addresses the two largest consuming sectors, aerosol and domestic refrigeration, plus one sub-project in the commercial refrigeration sector. It effectively provides for complete phase-out of ODS consumption in the commercial and industrial aerosol sector, and will complete phase-out in the major and most cosmetic viable domestic refrigeration manufacturers. Future GEF and donor funded projects may follow to address remaining ODS consumption in the industrial/commercial refrigeration, refrigeration servicing, solvent, foarn and fire protection sectors. This will be dictated by the availability of financial resources and long term viability of enterprises in these sectors. The Bank is also assisting the Government on a parallel initiative related to ODS production phase-out, which involves the setting up of a separate funding facility to be financed through bilateral contributions. 14. Aerosol Sector ODS consumption in the form of CFC propellants in Russia likely represents the largest and most cost effective single consurnption phase-out opportunity in the world today. The Russian Federation has an established aerosol industry that continues to consume large quantities of CFCs. The CFC aerosols (78% of total aerosols) are strongly favored by the cosmetic industry and are selling readily even in a suppressed economy. In 1992, consumption of CFCs by the aerosol industry totaled 18,150 MT, approximately 46% of the total ODS consumned in Russia. Of this total 17, 908 MT were consumed in cosmetics and industrial applications with the remaining being used in pharmaceutical applications. Since that time, one major aerosol producer (Chilton) has undertaken conversion to non-ODS propellants using its own resources, resulting in an overall decline in consunption. However, those continuing to use CFCs have generally maintained consumption despite economic conditions, with the most recent trends indicating that consumption is again rising. Sub-projects are proposed within the overall Project framework to eliminate ODS consumption at all seven major current ODS users producing commercial and industrial aerosol products. The beneficiary enterprises accounted for 85% of the ODS used in the aerosol sector in 1992. Based on 1994 consumption figures, 13,121 MT will be phased out by the overall Project with 2,456 MT, and 10,665 MT being achieved through the first, and second tranches respectively. Phase-Out in the aerosol sector is efficient and cost effective with low unit abatement costs. With one exception, where mechanical pumps are proposed (Altaichimprom), all sub-projects utilize hydrocarbon aerosol propellant (HAP) as a replacement for CFC propellant in common aerosol sprays. HAP is a purified form of liquid petroleum gas (LPG). The technology for use of HAP propellants has developed globally since 1980 and is readily available.  - 7 - While current Russian HAP production capacity is limited, investment projects to add capacity have been initiated in direct response to the demand created by these conversions. It is anticipated that additional supply will be added rapidly as further demand develops. Excess capacity also exists in several neighboring European countries. 15. The first tranche sub-project at JSC Arnest involves the elimination of 2,456 MT of CFC consumption in a 40 million can/year facility. The required investment involves replacement of its valve manufacturing facility, conversion of filling lines to HAP; provision for HAP purification facilities, and supporting infrastructure to store and handle highly flammable HAP. The enterprise's existing can-making facilities will not be replaced. A dedicated supply of HAP has been identified and contracted for at a refinery in the region that is installing the necessary production capability. The GEF sub-grant (US$5.7 million) serves as a key stimulus for the enterprise to invest an additional US$10.1 million in the plant conversion. The enterprise is able to undertake its portion of the investment out of internally generated funds, but would be unable to complete the overall investment without GEF support. Due to the extensive preparatory work that has been undertaken by the enterprise this phase-out can be achieved relatively quickly, with a targeted completion date of late 1998. Annex 2, Part 2 provides a detailed description of the enterprise and sub-project based on information obtained during appraisal. 16. Refrigeration Sector ODS consumption of refrigerant (CFC-12, HCFC-22), foam insulation blowing material (CFC-l 1) and solvents (CFC-1 13) was 3,594 MT/year in 1993 for the manufacture of domestic, commercial and industrial refrigeration products. In addition, the refrigeration servicing sector is estimated to account for an annual consumption of 4,500 MT/year. Twelve domestic refrigerator manufacturers, four stand-alone domestic compressor producers, six commercial refrigeration equipment manufacturers and eleven industrial refrigeration equipment manufacturers have been identified in the overall sector. Eleven investment sub-projects (five refrigerant and six foam) in six of the largest domestic refrigerator manufacturers have been selected for the Project. These manufacturers accounted for 77% of ODS consumption in the domestic refrigeration sector in 1993. In these enterprises 1,972 MT/year ODP will be phased out based on current consumption rates. In addition, two investment sub-projects in the major commercial refrigeration equipment manufacturer have been included in the Project. This accounts for 68 MT/year ODP phase-out. The remaining enterprises in the domestic, commercial and iiidustrial refrigeration sectors have not established viable phase-out investment plans and are generally operating at low capacity. Many of these plants are expected to close down, as they are not commercially viable. The refrigerant sub-projects involve the replacement of CFC-12 refrigerant with HFC-134a or, in one case, a propane/butane mixture. Use of HFC-134a4 or The enterprise's decisions on technology are based on an in-depth analysis of commercially available technologies, prevailing local market conditions and export potential. Consideration of emerging technology such as hydrocarbon mixtures, was encouraged during Project preparation. A workshop was organized in Moscow to inform the enterprises of recent developments in natural fluid refrigeration and to encourage more in-depth consideration of the technology. At appraisal, those enterprises which are not too advanced in their engineering work for conversion will be again provided with the opportunity to evaluate their final choice of technology through the provision of specialized technical support. The practicality of selecting or changing to an alternative technology such as  - 8 - hydrocarbons is a generally accepted choice for refrigerant replacement in many western countries. HFC-134a is not currently produced in Russia, although it can readily be imported and plans for its' production in place of CFCs are under consideration. The foam sub-projects involve the replacement of CFC-l 1 insulating foam blowing agents with cyclopentane, or in one case with HFC-134a. Cyclopentane is a globally accepted foam blowing agent substitute in refrigeration applications, and offers equivalent long term properties to CFC-1 1 foams. 17. The first tranche sub-project at JSC Krasnoyarsk Refrigerator Plant (KRP Biruyusa) involves the phase-out of 117 MT/year ODP through conversion of the existing facilities from CFC-12 refrigerant to a propane/butane hydrocarbon mixture. The investment covers the modification of testing and charging infrastructure, conversion of the charging line for flammable hydrocarbon use, and construction of hydrocarbon storage and handling facilities. The existing compressor design has been demonstrated as suitable for direct substitution of a butane/propane mixture. The GEF sub-grant (US$1.976 million) serves as a key stimulus for enterprise contribution of a significantly larger portion of the investment (US$4.74 million). The enterprise is able to undertake its portion of the investment out of internally generated funds, but would be unable to complete the overall investment without GEF support. This phase out can be achieved relatively quickly, with a targeted completion date of early 1998. Annex 2 Part 2 provides a detailed description of the enterprise and sub-project based on information obtained at appraisal. 18. The Technical Assistance Component will strengthen Russian institutional capacity for ODS Phase-Out, and provide implementation support for the Project's investment activities. This will supplement current resources available within the MEPNR, including those available through the World Bank's Environmental Management Project (EMP). The technical assistance component of the Project has been allocated a total funding of US$1.3 million. The first tranche TA component of US$748,000 has four sub-components covering the following key activities: i) development and implementation of the comprehensive policy and regulatory framework for ODS phase-out, including sector specific bans, licensing and tax measures (US$200,000); ii) establishment of an effective system for monitoring if ODS production, consumption, recycling and phase-out investment in Russia (US$190,000); iii) supplementary sub-project preparation support to respond to gaps in existing preparation information (US$180,000); iv) strengthening of sub- project appraisal and implementation capacity within the CPPI and beneficiary enterprises through provision of training, and appraisal guidance documentation (US$ 100,00); and v) development of a public awareness and information program (US$78,000). The balance (US$552,000) of the TA component has been allocated to the second tranche to assist the six major ODS producers to evaluate different technology options for production of ODS substitute materials. Having recently reached agreements with these producers on compensation packages for ODS production phase- out, this assistance is now an urgent priority. Annex 2, Part 4 provides a more detailed description of the TA component. hydrocarbon will be assessed in relation to: (i.) the amount of preinvestment already committed to a particular technology, (ii.) the time and additional investment required to change technologies at that point, and, (iii.) safety and locational considerations.  -9- 19. A Sub-grant Processing Component of US$1.7 million has been allocated for the Project consistent with other MP financed projects using a financial intermediary. Of this amount US$226,000 will be available for processing the first tranche projects through to sub-project start up. The funds will be utilized by the ODS PIU for its own operating costs, as well as for the hiring of consultants to assist it in Project appraisal and supervision of procurement and Project implementation. 20. The cost of Project feasibility studies has totaled US$1,250,000, which includes US$950,000 provided by GEF Project Preparation Advances for the aerosol and refrigeration consumption sectors, as well as for ODS production phase-out, and US$300,000 by the United States Trade and Development Agency for solvent, foam and fire fighting sector Project preparation now in progress. V. PROJECT COSTS AND FINANCING 21. The criteria for determining the GEF grant component of each sub-project has been based on that utilized by the MFMP. This approach has been adopted by previous GEF ODS projects in the transition economies of Europe on the basis that GEF Participants approving funding for these projects are also Parties to the Montreal Protocol and for the most part contributors to the MFMP. It is also consistent with the requirement of the GEF Operational Strategy adopted in October, 1995. The GEF funding for this Project is restricted to incremental investment costs. Incremental operating costs, while eligible, have been excluded due to limitations on the availability of GEF fimding. Eligibility for retroactive financing will be determined at sub-project appraisal in accordance with the requirements set out in the GEF ODS Operational Strategy and consistency with World Bank procurement practices. It was agreed at negotiations that the maximum amount of expenditures eligible for retroactive financing, under this Project, would be US$6 million. Such expenditures would have to be incurred after July 31, 1995. Proceeds of the GEF grant will not be used for government duties or taxes, which have been included in the costs to be covered by the enterprises from their own internally generated funds. 22. The overall framework Project costs and anticipated financing are summarized in Table I and further detailed in Schedule A, Tables Al and A2. The total Project cost is estimated to be US$104.3 million, of which US$101.3 million is for sub-project capital investments, US$1.7 million is a sub-grant processing charge and US$1.3 million is for technical assistance. The GEF grant of US$60 million will contribute US$57 million towards the cost of sub-project investments and the balance will fund the sub-grant processing and technical assistance components. The balance of sub-project investment costs (US$44.3 million) will be financed by enterprise funds and commercial banking sources. It was agreed at negotiations that a clause would be inserted into the sub-grant agreements with the beneficiary enterprises that would commit them to providing the counterpart funds.  - 10 - 23. For the first tranche, including an aerosol sub-project and a domestic refrigeration refrigerant conversion sub-project, as well as a technical assistance and sub-grant processing component, the total Project cost is estimated to be US$21.3 million, as shown in Table 1. Of this amount, US$8.6 million will be provided by the GEF grant for GEF eligible costs, including US$7.6 million for enterprise specific sub-projects, US$0.226 million for sub-grant processing and US$0.748 million for technical assistance. The balance of US$12.7 million will be financed by e.nterprise funds and commercial banking sources. No retroactive financing is required for the first tranche investment sub-projects. Table 1 Project Cost and Financing Summary (US$ million) Incremental Capital Costs J/ Project Finance Plan Category GEF Enterprises Project First Project First Project First Tranche Tranche Tranche Aerosols 47.1 15.8 29.0 5.6 18.1 10.2 Refrigeration 54.2 4.5 28.0 2.0 26.2 2.5 TA/Institutional 1.3 0.8 1.3 0.8 Strengthening _ Sub-grant Processing 1.7 0.2 1.7 0 .2 TOTAL 104.3 21.3 60.0 8.6 44.3 12.7 I/ Includes 10% physical contingencies on sub-project capital costs 24. Schedule A summarizes the Project's cost and financing plan by sub-project. Appraisal of the two sub-projects in the first tranche has verified these cost estimates. During appraisal it was confirmed that the beneficiary enterprises have the capacity to meet their portion of the required investment from internally generated funds and have agreed to give priority to financing these investments (see Annex 2). The cost estimates and financing plans for second and third tranche sub-projects are based on information developed during Project preparation. They are currently being updated in accordance with Ozone Operations Resource Group (OORG) reviewers' comments and will be further verified during the appraisal of these sub-projects.  - 11 - VI. PROJECT IMPLEMENTATION ARRANGEMENTS Implementation Arrangements 25. Existing institutions, which are now established, will be responsible for various aspects of Project implementation as agreed at appraisal (Annex 1). The Governnent has assigned the MEPNR responsibility as executing agency for the Project. Within the MEPNR, responsibility for implementation of the Project is assigned to the CPPI, which will coordinate its implementation within the framework of the Country Program and with other Government agencies through the Inter-Agency Commission for ODS phase-out. The CPPI operates under the MEPNR for implementation of the Russia Environmental Management Project (EMP) and other internationally financed projects. A Project Administration Agreement between the MEPNR and the CPPI was executed as agreed prior to Board presentation. 26. Within the CPPI, two ODS PIUs will manage the investment and institutional aspects of the Project. The ODS Investment Project Unit will manage sub-project appraisal and sub-grant approval, supplementary Project preparation activities related to ODS consumption and production phase-out and will supervise sub-project implementation. This unit will be associated with the National Pollution Abatement Facility (NPAF) within the CPPI. The second unit, named the ODS Country Program Unit, will be associated with the EMP institutional strengthening components of the CPPI. It will be responsible for managing the Project's technical assistance components related to strengthening of the regulatory and ODS phase-out monitoring capacity of the Government, enhancement of Project implementation capacity, and development of public awareness initiatives. In addition it will assist the the MEPNR in interfacing with international agencies including preparation and submission of ODS monitoring reports required by the Parties to the MP. The staffing requirements of these two units were discussed and agreed at negotiations. 27. The beneficiary enterprises will have direct responsibility for implementation of the investment sub-projects. They will be supported by the CPPI's procurement, administrative and financial management capacity developed for the EMP, in order to ensure that they meet Bank practices and procedures. The ODS Investment Project Unit will be responsible for providing support for sub-project appraisal, sub-project implementation supervision, procurement advice, disbursement approvals, financial and progress reporting, and ensuring compliance with GEF procedures. Where necessary, this unit will involve the National Pollution Abatement Facility5) (NPAF) in assisting enterprises in the preparation of financing packages and facilitation of co- financing arrangements. Individual sub-projects will be covered by sub-grant agreements between the beneficiary enterprises and the CPPI acting on behalf of the MEPNR. Sub-projects will be approved in accordance with the Bank's trustee obligations to GEF and individual sub-project funding will be subject to prior approval by the GEF. Draft sub-grant agreements for the two sub- 5) The NPAF has been set up under the EMP as an independent facility to finance commercially viable pollution control projects in Russia.  - 12 - projects in the first tranche have been discussed at appraisal. Execution of sub-grant agreements between the CPPI and the beneficiary enterprises are conditions of disbursement of sub-grants. Sub-grant agreements include the following provisions: implementation of Project with due diligence and efficiency: maintenance of records and accounts: auditing of financial statements: nrocurement of goods, works and services, according to World Bank procedures: independent inspection of physical completion: insurance provisions: regular reporting on financial condition of the enterprise: suspension of grant for non-performance: refunding grant in case of misuse: and preparation of a completion report. Procurement and Disbursement 28. Procurement of goods and services will be in accordance with Bank Guidelines as set out in Schedule B. For the first tranche, detailed procurement plans for the two enterprises were agreed at appraisal (Tables B3 and B4) with sub-grant funds being allocated primarily to imported equipment to be purchased using International Competitive Bidding (ICB) or International Shopping (IS) procedures. Projected summary procurement arrangements for the overall Project first and for the tranche are also included in Schedule B as Tables B1 and B2. The detailed procurement plans for the second and third tranches will be finalized upon appraisal of individual sub-projects included in these tranches. It is expected that the first tranche projects would start in June 1996 and be completed by December 1998. With approval of the second tranche the sub- projects in this tranche are expected to begin in January 1997 with completion expected in June 1999. The implementation schedule for the remaining sub-projects in tranche 3 will be dictated by the date of GEF Council approval, but can be anticipated to cover a two and one-half year implementation period. Disbursement arrangements and expected schedule of disbursement are given in Schedule B as Tables B5 and B6. The Project completion date is December 31, 2000. Monitoring and Evaluation 29. The closing date for the grant is December 31, 2001. The CPPI will have overall responsibility for monitoring Project progress. It will prepare brief monthly, as well as quarterly progress reports summarizing progress on Project implementation, disbursement, and highlighting issues and follow up actions to ensure that the Project remains on schedule. An improved system of timely monitoring of ODS consumption and production will also be adopted and regularly reported. The CPPI will also be responsible for preparation of a Project Completion Report, to be completed within six months of the end of Project implementation. Specific Project performance indicators were developed and agreed at appraisal. These are provided in Table 2. Accounts and Audits 30. A computerized Project accounting system has been set up in the CPPI to provide timely and accurate reporting of Project expenditures for the EMP. This system is already being used for financial reporting of expenditures and disbursements for the GEF ODS PPA account and will  - 13 - continue to be used for the duration of the ODS Project. These accounts, as well as beneficiary enterprise accounts will also be subject to independent audit by an internationally recognized auditing firm acceptable to the Bank. The same firm that is selected to audit the EMP accounts will also be commissioned to audit the ODS Project accounts. Table 2 Performance Monitoring Indicators 1. Counterpart funding for ODS Consumption phase-out of $44.3 million. 2. GEF Grant funding of ODS Consumption phase-out of $60 million to be approved in three tranches. 3. Complete ODS phase-out in: (i) seven aerosol producing facilities; (ii) six domestic refrigeration manufacturing facilities, including both refrigerant charging and foam blowing facilities; and (iii) one commercial refrigeration facility. Setup a pilot facility for refrigeration servicing for ODS recycle and recovery. 4. Enact and enforce regulations for ODS phase-out and control of ODS exports. 5. Develop and operate an effective system for monitoring ODS consumption, production, recycling, import and export. 6. Fulfill international reporting requirements as specified by the parties to the MP. 7. The Project will phaseout 15,354 MT/yr. ODP, representing 35% of 1992 consumption. 3upervision 31. Supervision by a Bank team will take place semi-annually following the submission of the progress reports by the CPPI through the MEPNR. The supervision missions will be composed of the task manager, supported by financial and technical specialists as needed, and will require about 15 staff weeks per year.  - 14 - VII. PROJECT SUSTAINABILITY 32. The Project's sustainability is based on the Russian Federation's commitment to ultimately meeting the country's obligations under the MP, and to provide a sound institutional and policy framework for its overall ODS phase-out program, as documented in the Country Program and the formal commitments made to it by the Government (Annex 3). This institutional and policy framework will be supported indirectly by the EMP, and directly by the Project through provision of technical assistance to the MEPNR for strengthening its institutional capacity and ODS phase-out implementation capability. Sustainability of enterprise investments is based on the strict criteria used for sub-project selection. Project preparation work undertaken to date has identified and documented a wide range of individual sub-projects in critical consumption sectors with the assistance of local and foreign experts. A number of potential sub-projects have been excluded from the Project because of low product demand and/or outdated technology and equipment. Only the most promising sub-projects from a technical and commercial perspective have been included in the Project pipeline. In addition participating enterprises are being subject to a financial viability evaluation in preparation for sub-project appraisal and final selection. This evaluation determines the enterprise's financial position, ability to sustain its portion of the required investment, and its medium term business prospects. Project funding will make provision for on- going assistance to the beneficiary enterprises in their preparation of financial management and marketing plans. VIII. LESSONS FROM PREVIOUS BANK EXPERIENCE. 33. The Project is the sixth GEF-funded ODS phase-out project to be recently initiated in the transition economies of Central and Eastern Europe and, therefore, direct Bank experience in these countries and associated lessons is limited. However, the Bank has implemented ODS phase-out projects in fifteen developing countries as the MFMP Implementing Agency. A number of lessons have been leamed from experience with these projects including: a) the importance of a national phase-out policy or Country Program as a basis of assuring commitment and ownership by the client country; b) the value of strong enterprise/government linkages to achieve phase-out objectives; c) the need for institutional strengthening and training for local implementation units and financial intermediaries; d) the utility of using a framework project supported by a pipeline of sub-projects subject to individual appraisal and approval by a financial intermediary; and e) the importance of technical support in the preparation and review of sub-projects. Additional lessons have been learned from other the Bank projects in Russia, including the importance of: a) identifying a consistent committed counterpart team with sufficient authority to move the Project forward; b) coordinating among key interested parties at the federal, regional and enterprise levels; c) early detailed attention to procurement and other implementation issues; and d) involving local consultants and institutes in the process. Lessons from the EMP indicate the need for early appointment of project managers and implementation teams so that critical procurement activities can be initiated upon loan effectiveness. The design, preparation and structure of the Project  - 15 - incorporates these lessons in a number of ways. Project preparation work has involved a well defined Country Program and identification of a wide selection of sub-projects. The MFMP framework Project model, including a pipeline of approved sub-projects, is being utilized. All of the sub-projects in the pipeline have been independently OORG reviewed. Technical assistance directed at strengthening institutional capacity within the government, implementing agencies and enterprises has also been provided. Sub-project processing procedures are similar to those used for MFMP projects, including the utilization of the technical review capability established for these sub-projects. Finally, both the ODS Task Force and the ODS PIU are already operational and are supported by a smoothly functioning procurement and disbursement capability established for the EMP. IX. RATIONALE FOR BANK AND GEF INVOLVEMENT 34. Russia represents the second largest producer and consumer of ODS in the world, where substantive progress toward the phase-out of these materials is not well advanced. As such, it represents one of the most significant country specific opportunities available to reduce ODS use on a large scale and, as a consequence, to achieve major global environmental benefits through cost effective technological interventions. 35. The Project is consistent with the Bank's assistance strategy to the environmental sector and with its Country Assistance Strategy to Russia. It provides for the strengthening of institutional capacity and development of policies and regulatory actions required for implementation of the overall ODS phase-out program. This institutional strengthening is coupled with core investments at the enterprise level, both as demonstration of effective ODS phase-out and as significant contributors to the program. It will support the development of a market oriented economy by focusing direct financial assistance on viable enterprises requiring technological change to remain competitive under international environmental standards. It assists in redirecting public sector involvement in the economy through strengthening of institutional capacity for monitoring and regulation of ODS consumption, production and export. Finally, it establishes a key role for the Bank in mobilizing bilateral and multilateral grant funds in support of a key global environmental priority, where this would otherwise not be available. 36. The Project is complementary to the Bank's overall support to Russia in the environmental sector. The technical assistance components of the Environmental Management Project (EMP) will enhance the management, resource and institutional capability within the MEPNR, which in turn will be supportive of the administration of ODS phase-out activities. Additionally, enterprise-specific ODS phase-out sub-projects are expected to provide opportunities for utilization of the National Pollution Abatement Facility (NPAF) as a financial intermediary. Cooperation between and integration with various Bank initiatives is considered important, recognizing the scale of environmental problems that exist in Russia and limitations on resources available to address them.  - 16 - 37. The Bank's role to date has involved the provision of two GEF Project Preparation Advances (PPA) for the identification, technical definition and financial screening of sub-projects in the aerosol and refrigeration ODS consumption sectors, and for the facilitation of ODS production phase-out. In addition, the Bank has facilitated and assisted in donor funded studies supporting the development of the Country Program (Denmark) and Project preparation work in the solvent, foam and fire protection sectors (United States). The Project preparation work in the aerosol and refrigeration sectors has been completed. This work initially identified twenty-nine potential candidate sub-projects (seven in the aerosol sector and twenty-two in the refrigeration sector). The most advanced and cost effective of these sub-projects have been selected for the pipeline included in this Project. Some of those that were not selected, along those expected to be identified in the solvent, foam and fire protection sectors, are expected to provide a pipeline of sub- projects for a possible future GEF Project, or for other multilateral or bilateral initiatives. The work covering production phase-out requirements in the six major enterprises manufacturing ODS in Russia has formed the basis of a separate Bank initiative to provide donor funding of ODS production phase-out, which is now being arranged in parallel with and supported by technical assistance from this Project. 38. Consistent with the country eligibility requirements as set out in the GEF Operational Strategy, funding to the Russian Federation for the first project on stratospheric ozone protection has been allocated by the GEF on the basis that Russia: a) is not an Article 5 country in the MP and eligible for funding from the MFMP but has a demonstrated need for assistance in meeting its phase-out obligations under the MP; b) has succeeded to the FSU's ratification of the Vienna Convention and MP, and has ratified the London Amendments to the MP; c) has completed preparation and is undertaking implementation of a Country Program; d) has undertaken to complete submission of a formal justification of its 1996 non- compliance position to the Parties to the Montreal Protocol, inclusive of causes of non- compliance, assessment of delays in the implementation of control measures and a revised schedule of commitments; e) has undertaken to provide clarification of its arrears in contributions to the MLMP; and f) is fulfilling its obligations with respect to reporting to the Parties to the Montreal Protocol on ODS production, consunption and trade data. 39. This Project has been designed based on the requirements defined in the Country Programn and the guidelines of the GEF Scientific and Technical Advisory Panel (STAP). It utilizes the framework Project model developed for investment operations financed by the MFMP. Individual sub-projects have been individually reviewed by the Ozone Operations Resource Group, approved in accordance with GEF procedures. It applies to a range of enterprise-specific sub- projects that offer substantive ODS phase-out gains, but require investments for which the  - 17 - beneficiary enterprises would not be able to obtain sufficient financing from commercial sources. Within these sub-projects, grant funding is limited to eligible incremental investment costs, while the enterprises are responsible for financing the balance from their own resources, financial intermediaries such as the NPAF, or through loans from commercial banks. X. PROJECT BENEFITS 40. The Project's primary benefit will be its contribution to ODS phase out in Russia, which is now one of the largest remaining consumers and producers of ODS in the world. The sub- projects identified for the Project are estimated to phase-out 15,354 MT/year ODP, based on 1994, or the last three year average consumption data. It effectively eliminates ODS use in the aerosol sector, which is the country's largest consuming sector. In addition, it phases out ODS use in the largest and most viable domestic refrigerator manufacturers, accounting for an estimated 77% of consumption in the second largest ODS consuming sector. Finally, it initiates phase-out in the commercial refrigeration sector. The framework provided by the Project facilitates access to other financial resources. This will enhance Russia's ability to initiate other ODS phase-out projects, either independently, through other Bank supported facilities such as the NPAF, or potentially as part of future GEF-funded projects. The substantial reduction in demand for ODS will add further incentive for the phase-out of ODS production in Russia. The successful implementation of the Project will demonstrate Russia's commitment to meet its ODS phase-out obligations with the international community. The Project will directly assist viable, market oriented enterprises in modernization of manufacturing capability and in the development of export ready products utilizing non-ODS technology. The institutional capacity for monitoring and regulatory enforcement of ODS phase out, increasing public awareness of the issue and assessing investment opportunities will also be strengthened under the Project. XI. PROJECT RISKS AND MITIGATION MEASURES 41. Risks associated with the Project are generally comparable to other industrial and institutional development activities in Russia. These include: a) the fragmented decision making process on environmental and investment matters at the federal and regional levels; b) the limited enforcement capability to support environmental initiatives; c) conflicting mandates and lack of cooperation between government agencies; d) lack of familiarity with Bank procedures, investrnent planning, and project management; e) difficulties in arranging financing of local costs for environmental investments; and f) the general economic climate in the country. Project specific risks are primarily associated with the sustained financial viability of participating enterprises, and the need to support ODS consumption phase out with domestic supply of substitute materials and equipment. The conditionality of GEF funding on acceptance and approval of Russia's ODS phase- out commitment and strategy by the Parties to the Montreal Protocol also constitutes a project risk.  - 18 - 42. The Project has been designed to minimize these risks to the maximum degree possible. The general institutional risks associated with activities in Russia are mitigated by the overall institutional strengthening provided by the EMP, and the direct policy and regulatory assistance provided to the MEPNR for ODS phase-out. Administrative and Project management risks are reduced by focusing the Project's operational implementation responsibility within the CPPI, specifically with the addition of specialist technical and Project supervision resources within the ODS PIUs. Risks associated with financing local costs are addressed by provision of co-financing assistance through the NPAF. Sub-project specific risks associated with enterprise viability and technical capability are mitigated by undertaking Project preparation work to support the selection of the most cost effective and commercially viable sub-projects, the use of commercially proven ODS conversion approaches and technology, and the provision of procurement and financial planning assistance as part of Project implementation. The development of HAP and HFC-134a supply capability for the aerosol and refrigeration sectors respectively is expected to be commercially viable as a result of markets created by conversions initiated through this Project. The development of supply capability for both ODS substitute materials is also being facilitated by utilization of the NPAF as a vehicle to finance commercially viable investments in HAP and refrigerant substitute production. Beneficiary enterprise financial viability is being assessed as part of the appraisal process to ensure the enterprise's capacity to provide its share of sub-project financing. Risks associated with GEF funding linkages to Russia's phase-out commitment and strategy are being mitigated by Bank initiatives to mediate conflicts that have arisen between the Russian Government and the Parties to the Montreal Protocol. The establishment of the ODS Country Program Unit as a focal point to support of the Government's ODS reporting responsibilities under the MP should further serve to improve communication with the international community. This will be strengthened through the technical assistance component of the Project, which is designed to improve responsiveness of the country's ongoing monitoring and reporting obligations and strengthen the institutional basis for ODS phase-out. XII. ENVIRONMENTAL ASPECTS 43. The Project has been assigned a "B" rating for environmental assessment (EA) purposes. Each sub-project will be subject to environmental assessment in accordance with the guidelines and procedures established by the NPAF to meet both Russian Government and World Bank EA requirements. Potential environmental impacts include those associated with the flanmmability and air emissions characteristic of hydrocarbon based non-ODS substitutes, and site specific impacts associated with manufacturing plant developments or modifications. Each sub-project requires approval by the World Bank and the GEF Council prior to the sub-grant disbursement.  - 19 - XIII. AGREEMENTS AND RECOMMENDATIONS REACHED 44. The following action has been taken by the Recipient: Signing of the Project Implementation Agreement between the MEPNR and the CPPI (para 25). 45. The following are conditions of sub-grant disbursements: a) Each sub-project to be approved by the Bank and the GEF Council (para 43); and b) A sub-grant agreement to be executed between the CPPI and the beneficiary enterprise. Sub-grant agreements will include the following provisions: implementation of Project with due diligence and efficiency; maintenance of records and accounts; auditing of financial statements; procurement of goods, works and services, according to World Bank procedures; independent inspection of physical completion; insurance provisions; regular reporting on financial condition of the enterprise; suspension of grant for non-performance; refunding grant in case of misuse; and preparation of a completion report (para 27).   RUSSIAN FEDERATION OZONE DEPLETING SUBSTANCE CONSUMPTION PHASE-OUT PROJECT TABLE Al: SUMMARY OF PROJECT COST DATA IIH _l~ _ _________ __ _ R.ple CFli h 117 S1334 ODW 4%.. .11 (4716 (KmWWWsk) PA06gonr Rt~ift frisw35 Ri. -D .4S, Tocne cl ban cmary _rtm hmkeo , 74N ~~~~~~~~~~~~~~~~~~~~fl- Ni- WU-* ffW:K, - - NDCP d CFC on HsA ropdbt Csim sLaS OD .1 2 S Hd"- ~CFC to HAP Fradm Ctnerim 5A 1.4*1kg OD? (641AN) ,8 tftk AsreS CFCsg HA? Prnpdlm Cm_* 1,70 Si1A. OW? 4,34M (616p" 3,726MB (V.'-rm I___ __________ IbVmumwuh Ammi CFC t HAP ?rpda C_inn.'. 1,219 S3.1lig gOD 4,576,6 ( -4,12W *kAlSd.pr..n Aces.' Mabuics PR" tennis. 5931 SIAtkg. GD? 2AUPM a 2,303* M. bySt. A.e.g. CFC i HA?P P _NS C__ymr.. 2,66 S1,fl3r. OD? 5A75 (1 MtV w Dut RecCVC-Il Fem AeS 3.2 S9.31kDP 17,577M 55700 23,152 ______M CydWpIStP SEto R91l CFC-I Fwmir A@ 30 Slt4BIQ& OD? 3,7906 3,6357 6.74M (8w_v EP93} R -,I,g width *u C ne Rqmee CFC-1l wis HiC-132a as 22 571Skg ODID 12,79,0 654MB 313, ___ __ e d duhu.e CFC113 ue_ _tti-4.ah CensuS.' ReplamCFi-li Fining A is 57.12WkD 1,OD25160 353M 1,45m (Yw-cW fsEdu VA* Cydapesbe Rp-._ CFC-1i2 wi HFC-134s S S fg.D 5D 3 2 0111 ._ __ .R. t*4am6 MWM Teduics W is oe Cfl7 n Frn 1 _mp _cein, 526M -~~~~~~Dws.Ded 11 "FII _A_ 73*2 ODF 4,16P 7.WX 11.77NM (Lll}ak) pAfdowan R CydtpW Oink ~~~~Rqd CVrl I Fo"o Arw 132 S14&* ODF S.Im2"7 1VA atm6e