Municipal Development Project

closed

In support of its decentralization policy the Government has launched the Municipal Development Program (MDP), which aims at improving municipal services and strengthening municipal institutions. The MDP includes: (a) the implementation through the Financiera de Desarrollo Territorial (FINDETER) of a new sector lending policy based on more stringent criteria of financial and institutional project feasibility; (b) actions to strengthen regional agencies who help local governments formulate their investment and institutional development programs; (c) training of sector personnel; and (d) actions to enhance municipal revenues including the property tax. The project supports the MDP through the following components: (a) a line of credit administered by FINDETER to finance about 300 subprojects to improve urban infrastructure and strengthen beneficiary local governments; (b) a program to strengthen FINDETER and develop its lending pipeline; (c) the development of sector training agencies and the delivery of a training program to sector staff; and (d) a program to update cadasters nationwide.