The National Urban Development Program (NUDP) is an Investment Project Finance (IPF) operation in the form of a technical assistance loan to the Government of Indonesia. NUDP will develop a platform that brings together sectoral infrastructure investment programs in three ways: 1) Encouraging institutional and policy coherence within the national urban development agenda to enable efficient functioning of Local Governments (LGs); 2) enhancing integrated planning for urban investments based on a spatial development framework; and 3) establishing mechanisms and criteria for prioritizing investments, identifying financing gaps, and enhancing the fiscal management capacity of LGs to direct capital investments to strategic urban areas. NUDP includes four components, namely, (1) National Urban Institutional and Policy Development; (2) Integrated Planning for Urban Development; (3) City Development Planning and Project Management Capacity Development; and (4) Project Implementation Support.
Component 3 will strengthen the capacity of participating cities in developing their medium-term and annual work plans, managing fiscal resources, formulating funding strategies for priority projects. Conducting procurement, managing infrastructure assets, and conducting monitoring and evaluation