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Submitted by admin on 11 December 2022

Urban Infrastructure Development Program (UIDP) is implemented with the financing agreement between GoN and TDF to mobilize the source of GoN. TDF lends financial resources for investments in municipal development projects with the intention to finance projects of municipalities and urbanizing rural Municipalities. Town development fund also seeks to increase the Urban Infrastructure development program portfolio in coming years, for the positive impact on the development of urban centers as engines of growth. UIDP receives a credit line from the GoN within a set out financing modality as loan and this credit line does not comprise of any grant.

Stage 1: 

Application: TDF receives loan applications along with the required documents from the municipalities. 

Stage 2: 

Project Review: TDF performs the following activities at this stage i. Reviews submitted document, provides comments and feedback ii. Conducts site visits for the project that has been submitted for loan approval iii. Arranges meetings with the municipal officials for a formal discussion to understand the site and comprehend project details of the concerned projects to evaluate its suitability. This process enables TDF to better understand the project as well as the site and communicate with the local bodies regarding the project itself. 

Stage 3: 

Appraisal Preparation: After DPRs have been reviewed and site visits have been conducted, the appraisals are undertaken for the projects. Based on these appraisals, the projects are evaluated under criteria set by TDF for respective projects, which are feasible enough, are accepted and undertaken. Appraisal process ensures that the municipalities are in line with the appraisals conducted by TDF and these projects also fulfill necessary conditions of financing for the project. 

Stage 4: 

After TDF has finalized the decision, the municipalities are informed about the final decision of TDF, whether the institution will undertake or reject the project. The municipalities are also provided with the valid reasons for both acceptance and rejection of the project based on project appraisal.

Stage 5: 

After the project appraisals has been completed, the proposal regarding decision to undertake is presented before the Investment Promotion Committee, it recommends the projects to the Board for final approval. 

Stage 6:

Loan agreement is signed at this stage after the recommendation of loan from the IPC with approval from the Board. 

Stage 7: 

After the signing of the loan agreement procurement process for the project, construction work is initiated by calling Invitation for the Bids, followed by evaluation of submitted bid and the award of contract. 

After this process construction work for the projects begins. All these construction works need to be undertaken as scheduled by the municipality. TDF constantly monitors all of its business processes and supports the municipalities when required. TDF also monitors the construction works undertaken after this process and also disburses the payments as per the request for payments. TDF deems the project complete once the project completion report is submitted by the municipality. The post evaluation stage is also considered for loan repayment from the invested projects as well.


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