KATHMANDU, March 23: Deputy Prime Minister and Minister for Physical Infrastructure and Transport Narayankaji Shrestha has asserted that the Town Development Fund (TDF) was an important stakeholder at local level for mobilization of financial resources to develop urban physical infrastructures.

At a provincial seminar organized by the Town Development Fund, an autonomous financing intermediary institution, in Lalitpur on Wednesday, DPM Shrestha pointed out the need for the local government to take the lead to leverage the Town Development Fund for urban development and services.

Lauding the TDF for its initiatives in providing financing assistance besides capacity building, Shrestha shared that the government has already implemented 14 period plans since 2013 BS. He however lamented that expected results were not achieved in urban development sector although it was accorded high priority and resources were arranged accordingly.

"An organized city with basic physical infrastructure has not been built yet. There are some complications at policy level in adopting the scientific method of financial resources mobilization in construction of physical infrastructures. First we need a clear policy."

He argued that financial returns and sustainability were must for construction of physical infrastructures.

Furthermore, the DPM viewed that the TDF should be an important part of filling the financial and technical gap between the demand and supply at the time when the federal government was moving towards sustainable development to further strengthen the local government.

He called for restructuring of the Fund economically, technically and legally to make the Fund stronger and into an able financial institution catering to the need of the increasing urbanization.

The DPM pledged to take the lead to amend and implement the Town Development Act-2053 BS for restructuring of the TDF.

Similarly, TDF's executive director Krishna Sapkota said that he had expected that people's representatives in every local levels would collaborate with the TDF for at least one project during his tenure.

According to him, the seminar was aimed at sensitizing the participants about how to demand projects with the TDF, how to identify an area of investment and how to sustainably manage such projects among others.

Likewise, Hemraj Tamang, Secretary at the Ministry of Federal Affairs and General Administration underscored effective financial management to strengthen financial federalism thereby ushering the country towards prosperity through development efforts.

Lalitpur Metropolitan City Mayor Chiribabu Maharjan expressed his sadness that the TDF could not enter agreement for projects within the Kathmandu Valley. "The territory of Lalitpur Metropolitan City is small. To enter project agreement with the Town Development Fund, we need the land ownership card which we don’t have."

The TDF at present has invested Rs 14 billion in urban development and drinking water project in 88 municipalities.

 
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