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Case Study On The Project Appraisal Of Town Development Fund

776 words - 4 pages

Case study on the Project Appraisal of Town Development Fund


In the context of rapidly growing urbanization process and at the same time financial, technological and administrative deficiencies at the municipal levels, HMG/Nepal in accordance with the Development Board Act, 1956 had established Town Development Fund (TDF) in February 1988 with a view to assist the municipalities in their efforts of overall development. Realizing the very crucial and remarkable role-played by the TDF in urban development sector within eight years since its inception period, HMG/Nepal in view of developing the Board as an autonomous, self reliant, much productive and an ...view middle of the document...

Town Development Fund (TDF) aims to alleviate economic and social poverty in urban sectors through long term financing in social infrastructure and revenue generating projects. TDF supports Municipalities, Water Users and Sanitation Committees of STWSSSP, Hospital and Health Centres through long term financing on social infrastructure and income generating Projects in the form of Loan, soft loan and grant within strict financial rule and regulations. TDF’s Lending and Grant Policy specify general eligibility criteria for loans and grants. These criteria must be met before any other criteria.

TDF classifies projects by the loan/grant mix for which they are eligible and the types of infrastructure they support. The categories are Social infrastructure projects, Basic/utility infrastructure projects, and Economic/revenue generating infrastructure projects. Borrowers may be municipalities, urbanizing Village Development Committees (VDC), District Development Committees (DDC), Urban Local Bodies Joint Committees (as per LSGA and Regulations), Town Development Committees (TDC), or public corporation boards. TDF can finance the costs of civil works, services, equipment and goods, but cannot finance the land acquisition costs, or working capital.

Before providing loan or grant for any project, TDF prepares pre feasibility study, feasibility study and Detail Project report of the concerned project. This can either be done by TDF or by the entity desiring to ask for a loan or grant, and or any intermediatary...

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