Municipal Association of Nepal (MuAN), Public Private Partnership for Urban Environment (PPPUE), Ministry of Local Development and CITYNET jointly organized an Interaction Workshop on ‘Financing in Urban Infrastructures and Services in Nepal (PPP Perspectives)’ at Kathmandu on 14 February, 2008. The participants of the workshop were the representatives from the Government of Nepal, Municipalities, Local Government Associations, Commercial Banks, NGOs/INGOs and other concerned stakeholders.  The purpose of the workshop was to assess the existing situation of financial institution in Nepal for investing urban infrastructure and services, analyze the possibility of establishing of such Bank from the perspective of municipalities and MuAN, analyze the existing legal framework and thereby recommend an appropriate mechanism including legal, structural and financing framework for establishing such Bank in Nepal.

The workshop concluded that there is need and possibility for establishing a separate Urban Development Bank in Nepal. The Urban Development bank should be established through the restructuring of Town Development Bank to Urban Development Bank with the ownership of the Municipalities as well as private party's ownership and a detailed study on various aspects as discussed in the group work on three thematic areas should be made.