Project Cover Sheet

PROJECT COVER SHEET

PROJECT SUMMARY

PAMIR is a 100% TAJIKISTAN-owned company manufacturing domestic refrigerators. PAMIR currently uses CFC 12 as refrigerant in the production Domestic Refrigerators. This project as completed will eliminate a total of 8.61 ODP tons/yr of CFC 12 by conversion to the use of HFC-134a respectively. Funds requested will be used to change the existing production lines, and for technology transfer, technical assistance, re-design, testing, pre-production trials, and training. Incremental operational costs (6 months) are calculated for illustrative purposes, but they are NOT requested by the enterprise.

Prepared by:Risto Ojala

Reviewed by:Lambert Kuypers

-TAJ-PAMIR, page 1-

PROJECT OF THE GOVERNMENT OF TAJIKISTAN

ELIMINATION OF CFC 12 IN THE MANUFACTURE OF DOMESTIC REFRIGERATORS

1. PROJECT OBJECTIVE.

The objective of this project is to completely eliminate the use of CFCs used by PAMIR in the manufacture of domestic refrigerators.

CFC 12 is used as the refrigerant, will be replaced by HFC refrigerant. The company does not use CFC-11 as foam blowing agent since it uses glass wool as insulation material.

2. SECTOR BACKGROUND.

TAJIKISTAN has one large refrigerator manufacturer, the PAMIR Company situated in Dushanbe, the capital of TAJIKISTAN.

Additional information to be added from the Country Programme.

3. ENTERPRISE BACKGROUND

PAMIR is the only manufacturer of domestic refrigerators in TAJIKISTAN. Its production capacity is 176,000 units per year. It is situated in the Dushanbe. The company was founded in 1965 and has been serving since 1970 a large market for domestic refrigerator sector in the former Soviet Union. PAMIR had high production program level through 1980's and in 1991 the production program still exceeded 140,000 units/year. The company is 100% TAJIKISTAN state owned company. PAMIR is now active in the production of domestic refrigerators and produces 3 different models. 100% of the domestic refrigerators manufactured by PAMIR is sold in TAJIKISTAN market.

During the war 1992-93 PAMIR ceased usage of PU rigid foam as cabinet and door insulation material. Presently glass wool is used as an insulation material for the cabinets and doors

More details on PAMIR are given hereunder.

CFC USE IN avr. 1998:8.61 tons CFC 12 per year

FULL NAME:PAMIR

PLANT LOCATION:Dushanbe, TAJIKISTAN.

OWNERSHIP:100% (TAJIKISTAN)

NUMBER OF EMPLOYEES:1541 (partially used for refrigerator manufacturing)

No. OF MODELS:3

AVG.PRODUCTION IN 1998:70,087 units

No. OF PRODUCTION LINES:2

COMPRESSOR SUPPLIERS:Baranovichi, Belorussia

CONTACT PERSONS:Mr. Khakdov Mahmadsharip - First Deputy, Ministry of Industry

Mr. Mirov Ibodullo - Director of Pamir

TEL / FAXTel: +9923772 21-37-98

Fax: +9923772 21-82-81

The existing refrigerator designs and technology were developed "in-house" with assistance from compressor, component, and refrigerant suppliers. PAMIR has no formal technical assistance, technology transfer, or licensing, agreements with internationally recognised refrigerator manufacturers.

This project encompasses all ODS consumption used in refrigerator and freezer manufacturing operations at PAMIR. The production figures for year 1998 are summarized in the table below.

Compressors purchased are mainly fromBaranovitsch, Belorussia, capacity 160 kCal/h and 140 kCal/h. Average cost is US$ 35.50. It is estimated that replacement HFC 134a compressors cost will be about US$ 39.60.

4. PROJECT DESCRIPTION

PAMIR presently uses CFC 12 as a refrigerant for the production of Domestic Refrigerators. The total average annual consumption in the years 1998, and the ODP tons that will be eliminated by this project are shown in the following table:

-TAJ-PAMIR, page 1-

4.1. REPLACEMENT OF CFC 12 WITH HFC 134a.

HFC 134a is universally accepted as a zero-ODP replacement for CFC 12 in the manufacture of domestic refrigeration equipment and the technology is mature. This is the CFC replacement technology selected by PAMIR.

The conversion to HFC 134a requires the use of HFC 134a specific compressors and the associated new synthetic lubricants, re-design of the refrigeration systems to cater for the difference in thermodynamic performance of HFC 134a versus CFC 12, prototyping, testing and optimisation of each refrigerator model, and pilot scale manufacture and testing before full scale conversion of production to HFC 134a for each model. The conversion will result in changes in manufacturing procedures for which production line supervisor and operator training will be required.

The different properties of HFC 134a, the need to avoid cross-contamination with CFC 12, and the phased nature of the conversion of refrigerator production from CFC 12 to HFC 134a, means that new system evacuation, refrigerant charging, and leak detection equipment will be required.

The project budget includes provision for all of the items referred to above.

Details of the existing equipment on which the technology change will impact are provided in paragraph 5.2.3.

Incremental Operational Costs associated with the technology change from CFC 12 to HFC 134a are calculated for a period of six months but are not requested.

5. TECHNOLOGY

5.1. REPLACEMENT OF CFC 12.

5.1.1. OVERVIEW

At the present time the commercially developed options for CFC 12 replacement as the working fluid in the manufacture of domestic and commercial refrigerators and freezers are limited to the choice between:

-HFC 134a (or HFC blends for low temperature applications).

-iso-butane

HFC 134a is universally accepted as a replacement for CFC 12 in the manufacture of commercial refrigerators and freezers. HFC 134a is widely available and the technology is mature, having already been introduced commercially in many of the Developed Countries. Replacement of CFC 12 with HFC 134a requires relatively modest changes to existing production facilities.

Based on consumer demand it is first necessary to select HFC 134a as replacement for CFC 12. HFC 134a is, due to its high GWP, just an intermediate technology.

In the long run hydrocarbon technology will be the first choice. Hydrocarbons are the only known substitutes for CFCs in household and unitary commercial refrigeration that have no ODP and virtually no GWP.

Most major European manufacturers of refrigerators and compressors have switched to isobutane as replacement for CFC 12 as the new refrigerant for domestic refrigerators and freezers. By the end of 1994 most German manufacturers (e.g. AEG, Bosch-siemens, Foron, Liebherr etc.) had converted all their factories and household models (with exception of non-frost models due to the installed ventilator). By the end of 1995 a large proportion of the European domestic refrigerator industry had converted to hydrocarbon. There are already more than 50 million completely hydrocarbon based refrigerators (foam and refrigerant) in the market. No major household or servicing accident has been reported. Iso-butane as a refrigerant offers a lot of fringe benefits as well, e.g. better energy efficiency if properly optimised, lower noise level etc..

Conversion to hydrocarbon technology may become approppriate in CIS-countries since;

HC does not affect the ozone layer

HC has nearly no impact on the greenhouse effect

HC may become locally available

HC is a proven technology

HC will be manageable to handle when appropriate equipment will be installed

HC is may become cost effective

HFC 152a might be considered as another candidate for CFC 12 replacement in domestic and commercial refrigerators and freezers. However, HFC 152a is also flammable, the technology has not been developed commercially, and there are some questions around its stability in refrigerator systems. Furthermore, compressors for use with HFC 152a are not commercially available.

5.2.2. SELECTION

Based on the results of discussions with compressor suppliers, plus considerations relating to scale of manufacture, refrigerant charge sizes, work-force skills, as well as product availability, PAMIR selected HFC 134a as replacement technology for CFC 12. PAMIR has the intention to convert further to iso-butane without further GEF assistance, which will take place on a model by model basis so that PAMIR will have the choice to implement hydrocarbon technology while the user demand is increasing.

The new HFC 134a technology will be developed "in-house" by PAMIR with assistance from compressor, and refrigerant suppliers. The enterprise does not currently have any formal technology transfer agreements and the necessary technical assistance will be obtained from their compressor suppliers, as well as the refrigerant supplier. Assistance will also be provided by the relevant UNDP consultants. Provision for this is made within the project budget which will ensure successful project completion.

5.2.3. IMPACT ON THE PRODUCTION PROCESS

HFC 134a, like CFC 12, is non-flammable. HFC 134a has also been the subject of extensive toxicological testing and is considered safe in use in industrial applications provided the suppliers recommended occupational exposure levels are not exceeded. At the present time this means ensuring that exposure levels do not exceed 1000 parts per million on an 8-hour time-weighted average basis. This is the same as the Occupational Exposure Limit (OEL)/Threshold Limit Value (TLV) for CFC 12 and thus no changes from current practices are required.

There will be an approximately 10% reduction in the mass charge of HFC 134a compared with CFC 12 for a refrigerator system of the same capacity. This is taken into account in the calculation of the incremental operational costs.

-TAJ-PAMIR, page 1-

It is well understood that the chemical stability of HFC 134a/POE based synthetic lubricant systems in unitary commercial refrigeration systems, and hence the long term performance of the equipment, is sensitive to moisture content and certain chlorinated impurities. This requires that CFC 12 and HFC 134a handling equipment be carefully segregated, and it also calls for better evacuation of the system prior to refrigerant charging.

System cleanliness and low residual moisture content are vital to the successful manufacture of HFC 134a refrigerators, PAMIR will need to carefully re-assess production procedures and re-train production personnel as appropriate. (Provision for this is made within the project proposal budget).

The conversion from CFC 12 to HFC 134a will take place on a model by model basis, so that PAMIR will be producing both CFC 12 and HFC 134a refrigerators during the implementation phase of this project. This means that there is a requirement for new system evacuation equipment and refrigerant charging equipment.

Leak detection of the refrigeration system is an integral part of the manufacturing process and the use of HFC 134a requires that new leak detection equipment be employed.

The relevant existing equipment at PAMIR on which the technology change to HFC 134a will impact is as follows:

2 x BAKMA volumetric R12 charging station, complete with an integral vacuum pump and R12 liquefier.

6 x Russian made vacuum pumps,750 W

1 x Moldavian made water bath for leak detection

6 x Russian made electronic, model VT 2.

4 xRussian made GTE electronic leak detectors for refrigerant R12. These are used separately for post charging low/high leak testing.

The project proposal includes provision for TWO new R134a charging machines of equivalent capacity, ONE replacement vacuum pump, 3 programmable set-point electronic leak detectors, and retrofit of the remaining five vacuum pumps.

It is proposed that the funding requested for retrofit of the remaining FIVE vacuum pump may be used by PAMIR towards the purchase of new vacuum pumps should the enterprise choose replacement rather than retrofit.

6. PROJECT COSTS

6.1. ESSENTIAL INCREMENTAL CAPITAL COSTS

CAPITAL COST FOR CFC 12 PHASE-OUT

TOTAL INCREMENTAL CAPITAL COST

6.2 INCREMENTAL OPERATING COSTS

The calculation of the incremental operating costs is based on a six month period using 50% of the annual consumption in the year 1998. Annex A. provides detailed explanations on how the incremental operational costs were obtained. This is for illustrative purposes only, the incremental operating costs are NOT requested by the enterprise. The costs are summarized below:

PHASE-OUT OF CFC 12

6.3. TOTAL PROJECT INCREMENTAL COSTS

* : No operational costs were considered in these calculations since they are not eligible under the GEF.

6.5 COST EFFECTIVENESS (US$/Kg)

7. FINANCING PLAN

PAMIR, requests funding of US$ 172,656 -- representing the incremental capital costs of the ODS elimination project in line with the GEF eligible country ownership of the enterprise.

8. PROJECT IMPLEMENTATION

8.1 MANAGEMENT

UNDP will oversee the successful implementation of this project, and will provide technical assistance during project execution.

8.2 SCHEDULE

TIME FOR COMPLETION

Q1

Vendor Selection

9. REQUIRED REGULATORY ACTION

No regulatory permits are required for use and / or storage of HFC 134a.

10. PROJECT IMPACT

Based on data for the one year, 1998, this project will eliminate the use of 8.6 ODP tons per year.

11. ANNEXES

Annexes A - Incremental Operational Cost Calculations.

Annex B. - Project Technical Reviews.

ANNEX A. Incremental Costs resulting from replacing the CFC 12 Refrigerant with HFC 134a (US$)

These costs are only given for illustrative purposes.

Note 1. Compressor, component, and chemical prices used in the above table are best obtained from PAMIR at the time of project preparation.

Note 2. The calculated incremental cost for the HFC 134a refrigerant is based on a 10% reduction in the mass charge compared with CFC 12

ANNEX 1

BASELINE EQUIPMENT:

-TAJ-PAMIR, page 1-