Skip to main content



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 GTZ, 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 to play in the urban infrastructure development of the country. TDF finances long-term urban infrastructure development projects through its loan and grant funding.


TDF envisions to be a leading financial intermediary institution for promoting the sustainable urban infrastructure financing in Nepal.


Contribute to improvement of economic and social standard of people by facilitating efficient urban infrastructure asset creation and provisioning urban services in the emerging national development paradigm.

Objective Of TDF

● To improve basic urban infrastructure and services through long term financing for priority sector projects (social, basic utility and revenue generating).

● To strengthen technical, managerial and financial capability of municipalities to identify, implement and evaluate urban development projects; including promotion of institutions working for urban development.

● To improve financial and managerial capacities of other institutions emerging in urban sectors aiming for social development through the provision of long term financing.

The objectives as said above are very much relevant in view of the need for providing financial and technical support to the municipalities in the form of loans and grants. However, its objectives and Act permits for doing much more other activities and extending assistance to other emerging urban centers in Nepal not only limiting to the municipality.

The main purpose of TDF, as a sustainable financial institution, is to mobilize increased financial resources from Development Partners (DP) and Government of Nepal (GoN) and, 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 population. Specifically, the TDF would:

• Fund viable urban infrastructure projects.

• Provide efficient technical assistance including improved financial management of its clients.

• Facilitate the participation of private sector in infrastructure development.