Internal Strategies for Institutional Development
TDF’s Business plan is a road map for transforming TDF into an Urban Financing Intermediary Institution. MIS and accounting system (micro banker) have been further enhanced for efficient business processing and reporting. TDF has fully institutionalized the performance based monitoring system, SOPs and KPIs for all of business units and thereby link to performance based incentive mechanism. TDF has focused on studying problematic projects on a regular basis to restructure or reschedule its loan installments as and when deemed necessary, for loan recovery.
External Strategies for the Creation of Enabling Environment
TDF, to enhance capacity for sustainable operation of projects financed by TDF,allocates dedicated amount of its annual profit to support municipalities and small towns. It works closely with the government and the donors to include the technical assistance packages, as an integral component of the loan investment, especially for the financial reform and the service delivery improvement of the municipalities. Itis supporting local levels in preparing basis for tariffs, fees & taxes before taking decision on any investment projects. It has already established an “open access – criteria based” fund, though it is at nascent stage currently. TDF will work together with the financial institutions and the insurance companies for mobilizing their long term fund in urban infrastructure development. As provisioned in the foreign aid policy of Nepal, TDF is working with the government of Nepal and donors for establishing a pooled fund, and has been a strategic institution for GON in preparing and implementing the ‘National Urban Development Strategy’.
|Road Map for Institutional Transformation|
|The current situation demands TDF to be positioned as a visible and sustainable Financial Intermediary Institution by implementing strategic actions, as mentioned in its Business Plan (2016/17-2019/20); with specific business targets, strategic action plans and institutional development package. It envisions to finance sub- national governments, especially local level, using blended financing options in partnership with private sectors, Development Partners (DPs), municipalities and government.|