Maldives: Country Financing Parameters               36548
Date:June 19,2006

The country financing parameters for the Maldives set out below have been approved by the
Regional Vice President, South Asia Region, and are being postedon theBank's internal
website.

               Items               Parameter              Remarks/Explanation
CostSharing. Limit on the          100%        In individual projects, funding fromthe
proportion of individual project               Government of Maldives(GoM) or from
costs that the Bankmay finance.                other sources will begenerally encouraged, in
                                               order to leverage Bank resourcesand take
                                               advantage of partnership opportunities. The
                                               Bank may finance 100percent of all project /
                                               program costs whereneeded and appropriate.
                                               The Bank's financing sharewould be higher for
                                               community developmentand social sector
                                               projects; andlower for infrastructureand private
                                               sector developmentprojects.
Recurrent Cost Financing. Any      No country- The Bankwill continue to monitor the
limits that would applyto the      level limit aggregate fiscal position andprospects and its
overall amount of recurrent                    implications for recurrent costfinancing. In
expenditures that the Bankmay                  determining Bank financingof recurrent costs
finance.                                       in individual projects, the Bankwill take into
                                               account sustainability issuesat the sector and
                                               project levels, including implied future
                                               budgetary outlays. Bank financing of
                                               recurrent costs is expected toremain within
                                               modest ranges.
Local Cost financing. Are the      Yes         The two requirements are met. TheBank
requirements for Bank financing                may financelocal costs in the proportions
of local expenditures met, namely              needed in individual projects.
that: (i) financing requirements
for the country's development
program would exceed the public
sector's own resources (e.g., from
taxation and other revenues) and
expected domestic borrowing;
and (ii) the financingof foreign
expenditures alone wouldnot
enable the Bank to assistin the
financing of individual projects.
 Taxesand duties. Are there any    None        Taxes and dutiesare considered reasonable,
taxes and duties thatthe bank                  and non-discriminatory. The Bank may
would not finance?                             finance taxes and dutiesassociated with
                                               project expenditures. At the project-level, the
                                               Bank would consider whether taxes andduties
                                               constitute an excessively high share of
                                               projects costs.