The Asian Development Bank (ADB) wanted to help the Government of Nepal enhance the operations of the Town Development Fund (TDF), by helping to develop its capacity for dealing with public–private partnership (PPP) to meet the growing need for urban infrastructure and better delivery of urban services. ADB requested a consulting team to: 1.) develop TDF’s general financing policy and guidelines at the sector level; 2.) prepare TDF’s PPP financing policy and guidelines, including a review of existing PPP financing systems abroad (particularly in India) and of lessons for the TDF; 3.) provide support for consulting services on project appraisal and risk management for ongoing joint projects of the Asian Development Bank (ADB) and the TDF; 4.) develop a manual on PPP structuring and project appraisal for new projects and 5.) design two PPP demonstration projects to the stage when requests for qualification are issued and a shortlist of bidders has been established.