The TA closely fits within the framework of the ADB's Country Strategy and Program for Nepal (2005-2009), which prioritizes good governance as one of the four pillars and focuses on supporting the Government's decentralization initiatives, including fiscal decentralization. Improving financial management including own revenue collection enhancement and capacity development for urban services delivery in municipalities are urgent needs that have become evident from experiences of the on-going Urban and Environmental Improvement Project (L1966-NEP) and will help facilitate smooth implementation and O&M of the two investment projects in the pipeline: Secondary Towns Integrated Urban Environmental Improvement Project (PPTA-7182 on-going and project-processing planned in 2010) and Kathmandu Sustainable Urban Transport Project (R-PPTA 7243 on-going and project-processing planned in 2010).
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