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PAI Section5. Project Administration ActionsPAI No.5.11Paragraph No/s.6-10 Q/A No.0018
QUESTION:
    There are several cases where cost estimates for RETA have been formatted using two currency categories (FX and LC). It used to be just one currency (FX). Is this the new budget format?
ANSWER:
    The rules for TA budgets are in PAI 5.11, paras. 6-10. The PAI doesn't say anything about the budget format. It mentions foreign and local costs when it discusses the rules for the recipient's contribution, which is towards the local currency costs. It states that these rules don't apply to RETAs and SSTAs. GP 18 discusses the format for the TA paper but does not provide a format for the budget and does not mention any need to provide foreign and local cost columns. Paras. 79-102 discuss the preparation of TA reports (required for TA grants but not for TA loans or SSTAs). Para. 92 says that: the budget should show the local cost financing for PPTAs, the TA paper should state the estimated cost of the ensuing project, including foreign exchange and local currency costs. So the budget format appears to be a traditional practice. It's not specified in the rules but may be in memos. RETA budgets don't need a LC column. GP18 may have to be revised.