Urban Governance and Development Program: Emerging Towns Project

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The objective of the Urban Governance and Development Program: Emerging Town Project for Nepal is to improve delivery and sustainable provision of basic services and priority infrastructure in the participating municipalities. There are three components to the project, the first component being service delivery improvement. This component will, over time, aim to establish rules, and capacitate systems for improving the transparency, predictability and rationality of the grant system to municipalities. This will enable the Bank to potentially wholesale support for the Intergovernmental fiscal transfer (IGFT) system to municipalities. The second component is the socio-economic infrastructure development. This component will lay the foundations for a rational and transparent system of capital financing of urban infrastructure embedded within the overall intergovernmental fiscal framework. It will support expansion or rehabilitation of core service infrastructure and strategic economic infrastructure. The objective of this component is to assist municipalities in developing infrastructure that will lead to improved services and greater socio-economic benefits for residents and businesses. Finally, the third component is the institutional development.