GHANA: COUNTRY FINANCING PARAMETERS

Date: April 25, 2006

The country financing parametersfor Ghanaset out below have beenapproved by the Regional
Vice President,Africa Region, and are beingpostedon the Bank's internal website.

                                      Parameter
                                              ~~   RemarkdExplanation
ITEM

Cost sharing. Limit on the            up to 100%    Counterpart funding will continueto be
proportionof individualproject costs                encouraged. The types ofprojectswhich may
that the Bankmay finance                           be financed up to 100%includethose related
                                                   to communitybasedprograms,governance,
                                                    capacity-building,and biodiversity / interna-
                                                    tional waters protection. Counterpartftinding
                                                    will be the rule in SWAps and for projects
                                                    executedby entitieswith own sources of
                                                    income (eg, ports, power, water).
Recurrentcost financing. Any          No country    Recurrent cost financingwill be appliedon a
limits that would applyto the overall levellimit   case-by-casebasis, subject to project or
amount of recurrentexpenditures that               sector-levelassessment of medium-term
the Bank may finance.                              sustainability.Projectsthat includefinancing
                                                   for staff costs will be accompaniedby explicit
                                                   agreement that Governmentwill assume the
                                                   cost of permanent positionsafter the Bank's
                                                   contributionto the project is completed.
                                                   Performance basedincentiveprograms for
                                                   civil servantsmay be financed, providedthat
                                                   suchprograms are part ofthe government's
                                                    public sector reform programand are
                                                   applicableto all donor-fundedprograms.
Localcost financing. Are the          Yes          The requirements for local cost financingare
requirements of IDA financingof                    met. The Bank may finance localcosts in the
local expenditures met, namelythat:                 proportionrequiredby individualprojects.
(i) financingrequirements for the
country's developmentprogram
would exceedthe public sector's own
resources(e.g., from taxationand
Dtherrevenues)and expected
domestic borrowing; (ii) financingof
foreign expenditures alone would not
mablethe Bankto adequately assist
inthe financingof individualprojects.
Taxes and duties. Are there any       None         Taxes and duties are consideredreasonable.
:axes and duties that the Bank would                Localtax regimeswill needto be monitored
lot finance?                                        3s decentralizationprogresses. IDA will
                                                    :onsider whether taxes and dutiesconstitute
                                                    m excessively high share ofprojectcosts.