Bangladesh Municipal Development Fund (BMDF) is a company formed under the Ministry of Finance of the Government of Bangladesh in 1999. The administrative authority of BMDF is now vested with the Bank and Financial Institutions Division created recently under the Ministry of Finance. The BMDF was registered in 2002 under the Companies Act, 1994. The BMDF is guided under the Memorandum and Articles of Associations. The Memorandum of Association defines the Primary and ancillary objectives of the Company. The primary objectives, among other are (i) to extend financial support to the City Corporations and Pourashavas (Municipalities) referred to collectively as Urban Local Government Bodies (ULBs) with a view to strengthening their institutional and financial capacity to plan, finance, implement and operate infrastructure services; (ii) to procure, arrange, secure, receive and accept loans, aid, grants, and donations from any lawful source and to create a fund thereof and make available the same for utilization by ULBs; (iii) to provide and render financial and technical assistance and advice to ULBs seeking to develop infrastructure investment projects on a self selecting basis; (iv) to initiate and undertake appropriate training for company personnel as well as for staff of ULBs to promote greater efficiency on the part of company as well as to ensure better understanding by ULBs’s staff of the company’s procedures and operational requirements, particularly issues pertaining to, inter alia, lending and financial policies, eligibility criteria , and procurement. The Articles of Association are the detailed legal instruments to guide as to how the company would carry out its day to day activities. The main purpose of BMDF is to bring about qualitative improvement of urban livelihood through infrastructure development and environment improvement. The eventual target of BMDF is to assist the ULBs becoming self-sufficient and independent.
BMDF is a small office of 28 staff. The Managing Director is its Chief Executive Officer. He is armed with Program Manager, Finance Manager and Company Secretary catering responsibilities of engineering, finance and administration respectively. Against the project at hand BMDF hires third party consultants from outsources under appropriate terms of reference for preparation, review and appraisal of project documents as well as for management and supervision of the works. The number and level of the consultants depend on the size and kind of the project. BMDF functions under the administrative control of a Board of Directors composed of 11 members. The General Body of BMDF remains as the top authority for making policy and guidelines for BMDF to operate. The Secretary, Local Government Division of the Ministry of Local Government, Rural Development and Cooperatives of the Government of Bangladesh is the Chairperson of both Board of Directors and General Body.