Preparation of a Policy Options Paper for the Municipal Incentive Fund (MIF)

Dec 27, 2020

Description of Project:

The Policy Options Paper for the Municipal Incentive Fund for Afghanistan will build on Chapter 16 of the Municipal Law and will support both IDLG and the Government of Afghanistan to better articulate the provisions of the said law. The outcome will also include a comprehensive framework for its implementation.


e.Gen performed the following tasks to complete the assignment:

(a) At the MIF Legal Level: Review the legal and institutional provisions for establishing the MIF by IDLG under Chapter 16 of the Municipal Law.

(b) At the MIF Governance and Institutional Level:  Conduct institutional assessments of the 5 PCC municipalities under the CIP to identify appropriate performance indicators to be used for the MIF.

(c) Funding Sources: Explore both potential sources and level of funding that could be allocated on an annual basis by the Ministry of Finance (MoF) to the MIF.

(d) At the MIF Operational Level: Classify Afghan municipalities based on their current development activities, need for the development, their income level, population and remoteness.

(e) Policy Options: Subsequent to the MIF Legal, Governance and Institutional, Financial and Operational reviews, propose policy options in line with the findings of aforementioned reviews.


Finance and Risk




Ministry of Urban Development and Land, Afghanistan; World Bank