Introduction

Town Development Funds (TDF) is an autonomous financing institution established by the Government of Nepal (GoN) in 1989 with a long term institutional objective of becoming a self-sustaining and complementary part of intergovernmental fiscal transfer system. The TDF is the only financial autonomous intermediary institution in the country presently providing debt financing to local governments. Several donor agencies, including the GiZ, the KfW, the ADB, and the World Bank have worked with TDF since its inception. Local governments in Nepal, especially municipalities and fast growing emerging towns, are its main clients. The GoN, especially, the MoF and the NPC, view it is a key institution that has an important role t play in the urban infrastructure development of the country.
TDF finances long-term urban infrastructure development projects through its loan and grant funding.