KATHMANDU: Urban Development Minister Kulman Ghising has emphasized expanding the scope of the Urban Development Fund (UDF) and making it more effective by focusing on revenue-generating investments.
Speaking during a review of the fund’s operations on Friday, Minister Ghising suggested that the fund should prioritize sectors that provide financial returns, including e-mobility initiatives such as electric vehicles and charging stations.
“The fund, which channels investments in energy, water resources and irrigation, physical infrastructure, transportation, and partnerships with municipalities, can also be directed toward projects like waste management and energy production. We need to study the feasibility of such initiatives,” Ghising said. “The government is ready to implement necessary legal arrangements to further expand the areas for investment.”
Minister Ghising expressed confidence that the fund, currently undergoing recognition under the Green Climate Fund, would receive substantial financial support for investments in green energy projects once approved.
Binod Prakash Pandit, Executive Director of the fund, said the UDF currently has a financial base of Rs 7 billion in equity, Rs 5.19 billion from the Asian Development Bank, Rs 120 million from the World Bank, and Rs 2 billion in government loans. The fund has so far disbursed loans totaling Rs 16 billion.
The fund has been providing financial and technical support for urban infrastructure projects, including bus parks, drinking water schemes, land development, and construction of multipurpose buildings. Minister Ghising’s office noted that discussions were also held on using the fund to reconstruct municipal buildings damaged during the recent ‘Gen Z’ movement.
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