To enhance urban infrastructure resilience in Nagaland, the Government of India and the Asian Development Bank (ADB) inked a $2 million Project Readiness Financing (PRF) Loan agreement on 12 April 2022. This agreement is set to foster climate-resilient urban infrastructure, bolster institutional capacity, and augment municipal resource mobilization across 16 district headquarter towns (DHTs) in Nagaland.
The signatories to the agreement were Rajat Kumar Mishra, Additional Secretary of the Department of Economic Affairs in the Ministry of Finance, representing the Government of India, and Takeo Konishi, Country Director of ADB’s India Resident Mission, representing ADB.
Under the terms of the agreement of loan with India, ADB will extend a loan of $2 million from its ordinary capital resources, with a principal repayment period of 12 years and a grace period. Interest on the loan will be payable semiannually on 15 February and 15 August each year.
The project is estimated to cost $2.50 million, with the Government of Nagaland contributing the equivalent of $0.50 million for taxes, duties, PMU operating costs, and interest during implementation. The comprehensive scope of the Project Readiness Financing Activities encompasses multifaceted initiatives, including the formulation of sector strategies, investment plans, and feasibility studies, environmental and social impact assessments, and institutional capacity strengthening across various domains such as safeguards, procurement, gender equality, and social inclusion. These activities are expected to be completed by 31 August 2024.
The Nagaland Urban Infrastructure Development Project focuses on key sectoral components aimed at enhancing urban infrastructure. This includes providing safe drinking water, implementing wastewater management systems, upgrading urban roads and drainage, and establishing solid waste management systems. While specific project locations have not been disclosed, it is anticipated that the initiatives will target critical areas within the 16 district headquarter towns across the state.
According to the Project Agreement between the Government of Nagaland and ADB, the loan became effective from 7 June 2022. The initiative, known as the “Improving Readiness of Infrastructure Development Projects in Nagaland,” will cover 12 district headquarter towns in the state. The Urban Development Department (UDD) will oversee project execution, with support from the Directorate of Urban Development (DUD) as the implementing agency. The project management unit (PMU) established under DUD will ensure effective coordination among various departments, including the Public Health Engineering Department (PHED), to ensure successful project execution.
As per ADB’s latest update on implementation progress, significant milestones have already been achieved. These include the preparation of urban sector strategies, city-level investment plans, and climate risk assessments for all DHTs. The project also entails comprehensive institutional and financial strengthening, capacity development initiatives, and financial assessments of Urban Local Bodies (ULBs).