Town Development Fund (Nepal)

The Town Development Fund (TDF) is an autonomous government organization headquartered in Kathmandu, Nepal, with more than two decades of experience financing urban infrastructure across municipalities. Its mission is to improve economic and social well-being by financing sustainable urban infrastructure and providing technical assistance to local governments. Through its lending, technical assistance and project appraisal functions, TDF supports municipalities in developing infrastructure that responds to local needs and contributes to Nepal’s urban development priorities.

TDF has a strong institutional presence in Nepal’s urban sector through its long-standing engagement with metropolitan cities, sub-metropolitan cities and emerging municipalities. It works closely with public institutions, private entities and development partners, including KfW, the German Agency for International Cooperation, the Asian Development Bank, the World Bank, the European Union and the United Nations Capital Development Fund. In coordination with key line ministries such as the Ministry of Urban Development and the Ministry of Finance, TDF helps align municipal investments with national policies, fiscal frameworks and urban development strategies.

TDF intends to engage subnational governments, including metropolitan, sub-metropolitan, municipal and rural municipal authorities, to address public sector financing needs for mitigation and climate-resilient infrastructure. Through GCF support, TDF aims to expand financing and technical assistance for sustainable urban infrastructure while strengthening the capacity of local governments to plan, appraise and implement climate-responsive investments. This would position TDF to contribute to Nepal’s transition towards more resilient, inclusive and low-emission urban development.