Description The Boards of Directors, on March 19, 2008, approved a new policy on expenditures eligibility for Bank Group financing (Board Document ADB/BD/WP/2007/106/Rev.2 and ADF/BD/WP/2007/72/Rev.2). The objective of the new policy is to strengthen the Bank's focus on results through greater alignment of the expenditure eligibility policy on the development priorities of regional member countries (RMC). The new policy also seeks to tailor expenditure eligibility to the specific context of each RMC through the introduction of Country Financing Parameters (CFPs). CFPs provide a framework for determining eligibility of expenditure in each RMC taking into account issues such as the quality of its fiduciary environment, commitment to its development program, productivity of the expenditure, and macroeconomic situation. Overall, Regional Departments will lead the process of developing and disseminating CFPs, in close collaboration with the World Bank. However, towards reducing transactions costs in implementing the new policy, the Boards agreed that Management collaborates closely with the World Bank, including using the CFPs already prepared by this institution pour 38 pays. These CFPs are related to cost sharing/counterpart funds, taxes and duties, recurrent costs and local currency costs.