Local Development Pilot Project

closed

The objectives of the local development pilot project are to a) strengthen the institutional and financial capacity of local governments; and b) initiate, on a pilot basis, the development of a municipal credit market. The project has four components: a) local government capacity building - technical assistance and training for municipal governments to strengthen their financial management skills and public participation in the capital budgeting process; b) banking sector capacity building - technical assistance and training for local private commercial banks (PCBs) to improve their municipal credit analysis and project appraisal skills; c) local development fund (LDF) - establishing a loan fund to on-lend funds to PCBs for on-lending to municipalities and/or their utilities; and d) LDF management support.