Skip to main content
Submitted by admin on 10 December 2022


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

MFCB Communication

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;



Is this Project Updates ?