Asian Development Bank has agreed to extend loan assistance for infrastructure development in five North Eastern Capital Cities under the North Eastern Region Capital Cities Development Investment Program. Shillong is one of the cities, amongst the five cities selected. The overall investment is to the tune of 285.7 $ million of which 200$million (70%) will be ADB funding and 85.7$ million (30%) will be Ministry of Urban Development, GOI funding. The fund will finally come to the State Governments as 90:10 with 10% loan. Financing will be provided under a Multi Financing Facility (MFF) in accordance with ADB’s policy. The MFF will extend multiple loans to finance a range of subprojects under the Investment Program, subject to submission of a related periodic financing request (PFR) by the Government and execution of the related loan and project agreements. Department of Economic Affairs, Government of India has entered into a Framework Financing Agreement (FFA) with ADB on 14th May, 2009 followed by the signing of loan and project agreement with ADB by the Ministry of Urban Development, Government of India and State Government respectively on 4th August, 2009. There will be in all three tranches covering the period 2009-2010 to 2014-2015. Loan for Tranche 1 has become effective from 19th November 2009, Loan for tranche 2 has been signed on 19th Nov 2012 and become effective from 19th feb 2013 and State Government can apply for loan for subprojects in subsequent tranches depending on project readiness.
The national-level executing agency for the investment program is the Ministry of Urban Development.