Th
e government has decided to develop six municipalities across the country as model cities. The World Bank and Nepal Government are jointly funding the project. Dhankuta, Mechinagar and Itahari in the east and Lekhnath, Tansen and Baglung in the west have been selected for development as model cities.
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The development work will be carried out jointly by the Ministry of Physical Planning and Works and the Ministry of Local Development. The project is estimated to cost US$ 35 million of which The World bank will provide US$ 25 million as aid and loan while the government will invest US$ 10 million. The World Bank has agreed in principle to provide the amount. Similarly, German Technical Cooperation (GTZ) also has promised assistance.
The five-year long project would develop physical infrastructure in these cities.
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