MWSS was granted a minimum guarantee fee of 0.25 percent per annum of its ADB loan to finance the AWTIP, down from the original 1% given to MWSS. The directive came from the Department of Finance (DOF) through its letter of 25 May 2016 to the MWSS, pursuant to the DOF Circular 1-2016 on the Adoption of A Risk-based Policy Framework on the Issuance and Pricing of Guarantee and Foreign Exchange Risk Cover Fees. The circular promulgates guidelines governing the extension of guarantees by the national government for borrowings of GOCCs and GFIs. It provides a guarantee fee range from a minimum of 0.25% to 1.5% depending on the evaluation of financial conditions of GOCCs by the DOF. The guarantee fee is expressed as a percentage interest from the total loan of the receiving GOCC.