51658
                            BOTSWANA: COUNTRY FINANCING PARAMETERS

          Date: June 13,2008


          The country financing parameters for Botswana set out below have been approved by the
          Regional Vice President, AFR, and are being posted on the Bank's internal website.

I                  Item                  I   Parameter                       Remarks/Explanation
    A. Cost Sharing. Limit on the                           While continuing to emphasize borrower commitment
    proportion of individual project                        and ownership of individual projects, the Bank would
    cost that the Bank may finance                          retain the option of financing up to 100% of project
                                                            costs. However, specific arrangements would be
                                                            determined for individual projects, taking into account
                                                            project specific considerations. In practice, the Bank's
                                                            financing share in many projects is expected to be less
                                                            than 100% given government contribution and other
                                                            donor participation.




    B. Recurrent Cost Financing.             No country-    No country-level limit on Bank financing of recurrent
    Any limits that would apply to the        level limit   costs is proposed. On a project by project basis, the
    overall amount of recurrent                             Bank may finance recurrent costs after careful
    expenditures that the Bank may                          consideration of the sustainability of project
    finance                                                 achievements; and implied future budgetary outlays,
                                                            within the overall context of Botswana's aggregate
                                                            fiscal position and prospects.
    C. Local Cost Financing. Are                 Yes        The requirements for local cost financing are met. The
    the requirements for Bank                               Bank can finance local costs in any proportions required
    financing of local expenditures
    met, namely that: (i) financing
    requirements for the country's
    development programme would
    exceed the public sector's own
    resources (e.g., from taxation and
    other revenues) and expected
    domestic borrowing; and (ii) the
    financing of foreign expenditures
    alone would not enable the Bank
    to assist in the financing of -
    individual projects
    D. Taxes and Duties. Are there              None        The Bank may finance the costs of taxes and duties
    any taxes and duties that the Bank                      associated with project expenditures. No taxes and
    would not finance?                                      duties have been identified as excessive, unreasonable
                                                            or discriminatory. At the project level, the Bank would
                                                            examine whether taxes and duties constitute an