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Strategy

Internal Strategies for strengthening TDF

  • Formulate new rules, by-laws, and guidelines in line with proposed UIDC Act.

  • Update and enforce policies and procedures for smooth operation of business process.

  • Continued institutional reform process to enhance the capacity of TDF for implementing its proposed Business Plan.

  • Establish a system of project identification, project appraisal, project implementation and monitoring and evaluation for the effective and efficient service delivery as a financial intermediary.

  • Focus to implement the resilient and green infrastructures.

  • Restructure and reform organization structure in line with expected growth as UIDC and reform.

  • Develop and adopt Risk Management Framework (RMF) to ensure loan security and loan recovery.

  • Establish system automation for enhanced MIS, i.e., integrate management software with MIS.

  • Adopt performance-based monitoring system and mechanism for improved service delivery.

  • Implement the step-in-right to intercept IGFT in case of default loans.

  • Adopt international standard key financial indicators for enhancing TDF as a well recognized Prudential Financial institution, nationally and internationally.

  • Establish an appropriate communication and grievance handling mechanism within TDF.

  • Conduct necessary study for defining the long-term vision, mission, goals and core values of TDF.

  • Introduce market-base interest rate for the financing to urban infrastructure.

  • Expand TDF’s services to provincial level.

  • Introduce performance-based incentive to the employees of TDF.

  • Focus on strategic project finance and development.

  • Develop TDF as a Center for Excellence.

External Strategies for the Creation of Enabling Environment

  • Enact and implement the UIDC Act.

  • Collaborate with the government’s line agencies for the implementation of National Urban Policy and National Urban Development Strategy.

  • Collaborate with Investment Board of Nepal (IBN) and DPs for debt financing in the PPP projects.

  • Collaboration with Nepal Rastra Bank (NRB) for including revenue generating urban infrastructures as the specific lending sector in NRB lending directives for promoting Banking & financial institutions (BFIs).

  • Promote non-financing and blended-financing mechanism for financing urban infrastructures.

  • Collaborate with International financial institutions (IFIs)/ National financial institutions (NFIs), insurance companies and employment provident fund (EPF) for the consortium financing.

  • Collaboration and coordination with National Planning Commission, different government departments, Corporate entities like Nepal Telecom, National, Housing Company, Cooperatives and other related fund for the blended financing.

  • Initiate for improvement of borrowing capacity of TDF and clients.

  • Collaborate with NNRFC to prepare grant allocation and credit management policy for sub-national governments.

  • Explore and mobilize alternative financial resources for financing various infrastructure development sectors.

  • Collaborate with the government’s line agencies and municipalities to implement the provision of intercepting central government transfers in case of loan default.

  • Initiate for issuance municipal bond or project-based bond for urban infrastructure financing.

  • Collaborate with GoN and DPs for establishment of a pooled fund within TDF under a joint framework agreement (JFA), as provisioned in the foreign aid policy of GoN.

  • Establish network with the international organizations for the knowledge exchange and capacity development through Technical Assistance (TA) and exposure program.

 

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