171. It should be noted that with respect to the document (UNEP/OzL.Pro/ExCom.10/39), the following recommended guidelines were developed based on circumstances encountered and decisions taken to date and could be subject to further interpretation and/or amendment at the project preparation and approval and strategic levels. Policy decisions on all guidelines would be taken by the Executive Committee. The Committee decided the following:
A. the Multilateral Fund would not finance such costs as taxes, duties or other such transfer payments, nor the loss of economic subsidies or rates of return in excess of cost of capital which might incorporate non-economic financial effects such as administered prices or interest rates. Funding of the enterprises' financial costs by the Multilateral Fund would effectively be making the country a grant that exceeded the country's actual additional costs, which was not the intention of the Parties;
B. given the uncertainty associated with projecting future cash flows, recurrent costs would be considered for a transitional period as defined in the document and its Annexes. In cases where recurrent costs were not considered as defined in the document and its Annexes, a justification for that approach must be given to the Executive Committee by the implementing agency;
C. the policy of the Fund was to take savings and benefits into account when determining the grant amount. Savings and benefits of the project would be taken into account as outlined in that document and its Annexes. Where the savings and benefits of the project were uncertain, the estimate of the present value should, while remaining realistic, be made conservatively. The savings and benefits must be discounted to the net present value. In cases where savings and benefits were not considered as defined in the document and its Annexes, a justification for that approach must be given to the Executive Committee by the implementing agency;
D. incremental costs would not be financed by the Fund where there was evidence of double-counting.