Background
Town Development Fund (TDF), an autonomous entity, as a financial intermediary institution for the development of urban infrastructures in Nepal, is implementing Municipal Finance and Capacity Building (MFCB) Programme supported by European Union (EU). The MFCB action builds on the joint initiative of TDF and UN Capital Development Fund (UNCDF) in strengthening the capacity of selected municipalities and TDF in promoting economic development and investment in infrastructure, providing improved service delivery and accessing additional resources to finance municipal development agenda. The MFCB actions are intended to provide technical assistance to enhance the capacity of municipalities on the demand side, as well as enhance the capacity of TDF on the supply side to achieve the long term impact of contributing to foster local economic development through blending financing.
Programme Period and Budget
This program is a orginally for period of 4 years (February 2019 - January 2023) and extended to January 2024. Total budget of the program is 2,116,654 Euro.
Programme Municipalities
MFCB actions are going to be implemented in following 15 municipalities from all seven provinces of Nepal:
Organization, Communication and Coordination
The Programme Implementation Unit (PIU) of TDF will manage the programme in close coordination with TDF PMTA and UNCDF to support capacity building of municipalities and TDF
Approach and Methodology
- MFCB actions will build on as well as complement the interventions initiated by TDF and UNCDF and will build on the technical, financial, managerial and administrative capacities of both the pilot municipalities and the TDF;
- The programme actions will allow for integration with other National programs for
- Municipal Investment, when launched by the GoN;
- Works in enabling TDF in the long run, raise private debt from domestic capital market, for high priority urban infrastructure investments, contributing directly to improved living standards of urban investments in financially viable urban infrastructure project, including efficient technical assistance and financial management system;
- The programme actions will include facilitating the participation of private sector infrastructure development;
- TDF/PIU will implement the programme with a team of experts in a diverse areas;
- The team of Experts will closely work with MFCB dedicated team to support TDF and municipalities to perform the programme activities
Expected Output
- Enhanced capacity of municipalities to develop/update long term strategic plan,
- Enhanced Capacity of municipalities to develop investment pipeline for improved urban infrastructure and services,
- Strengthened public accountability and citizens participation through improved expenditure tracking, management systems and citizen engagement processes of municipalities, and
- Enhanced capacity of TDF for establishing and
- Operationalizing investment facility mechanisms (Municipal Investment Facility and Impact Investment Facility), including PPP projects.
Expected Outcome
Outcome (Objective-1)
- Enhanced capacity of municipalities to identify, prioritize, formulate and finance
Outcome (Specific Objective- 2)
- Enhanced capacity of TDF for operationalizing the Municipal and impact investment facilities with blended financing models.
Expected Impact
- Enhanced Capacity of municipalities and the Town Development Fund (TDF) to foster local economic development and climate resilient investment through blended financing
MFCB Activities
MFCB Programme has 49 activities to achieve 4 outputs. Out of this, 26 are task oriented and 23 are process oriented activities.
TDF/MFCB Contact Details
Town Development Fund. Mid-Baneshwor, Kathmandu
Phone: +977-014562456;
Email: tdf@tdf.org.np
Website: www.tdf.org.np
