The FC modules “Municipal development I and II” were part of the DC programme “National modernisation, decentralisation and reinforcement of autonomous decentralised governments”. During both of the phases, credit lines were made available for the selected municipalities to finance infrastructure measures. The implementing agency passed the loans on to the municipalities. The financing was able to be used for municipal investments in drinking water, wastewater and waste disposal infrastructure, as well as urban mobility infrastructure in phase II; however, there was a lack of demand for urban mobility.
