Chief Minister Neiphiu Rio on Friday urged multilateral development banks to consider advance financing support for northeastern states, saying the reimbursement-based funding model for externally aided projects (EAPs) poses structural challenges for smaller states such as Nagaland.
Addressing a seminar on “Leveraging Externally Aided Projects in the North-Eastern States” in Shillong, Rio said Nagaland remains committed to strengthening the implementation of externally aided projects and ensuring they translate into tangible improvements in people’s quality of life.
Highlighting the challenges faced by northeastern states, Rio noted that EAPs operate on a reimbursement model that requires states to pre-finance projects before funds are reimbursed. He said this arrangement creates difficulties for smaller states with limited financial resources and suggested that multilateral development banks consider mechanisms for advance financing support.
Rio also called for a dedicated fast-track clearance mechanism for the Northeast, pointing out that obtaining statutory clearances from multiple agencies often delays project implementation and affects timely execution.
He further observed that standard project timelines frequently fail to account for community consultations and local decision-making processes that are essential in the region. According to him, this often leads to project redesigns, revised cost estimates and extensions in implementation timelines.
The chief minister said the unique realities of the northeastern states, including hilly terrain, dispersed settlements, fragile ecosystems, customary land systems and limited institutional capacity, must be taken into account while designing and implementing externally aided projects.
At the same time, Rio said Nagaland sees significant opportunities for collaboration in climate resilience, sustainable agriculture, renewable energy, urban development, digital governance, healthcare, skill development and entrepreneurship.
He said the way forward lies in strengthening project preparation, enhancing institutional capacity, deepening collaboration among stakeholders, responding to community needs and maintaining a focus on sustainable outcomes.