The component will help ULBs to develop and finance subprojects on water supply, sanitation, solid waste management, roads (including street lighting), transportation, sites and services, area development and other urban infrastructure.The Local Self Government(urban) Department(LSGUD)of GoK will provide the ULBs with technical assistance to develop subprojects and select subprojects for financing.

    GoK plans to establish a specialised financial intermediary for local government infrastructure financing.Under the Kerala Urban Policy and Action Plan,KUDFC will be reformed to make it a more efficient financiaql intermediary.Oncce this has been done,ADB may conduct indepth financial due deligence to assess the capacity of the new financial intermediary to delegate the implementation of the component.