As stated by the ADB, the project is aligned with the following impact: propel green growth by promoting ecotourism and climate-resilient agriculture, protecting Meghalaya’s natural resources, and expanding forest cover. The project will have the following outcomes: nature-based climate-resilient community livelihoods improved, and environmental sustainability enhanced.

The project will adopt a cluster-based approach, focusing on six key tourism clusters with significant natural and cultural attributes. The project will integrate nature-based ecotourism with sustainable land management, including forest and natural farming, to achieve more impactful and lasting outcomes.

The project will diversify economic opportunities for about 8,500 direct local beneficiaries. The project’s major components include (i) building 12 naturebased ecotourism visitor facilities, serving as interpretation centers and demonstration areas for traditional crafts and skills, and marketplaces for local crafts and agricultural products, with utilities, solar lighting, landscaping, and trail upgrades; these will benefit 1,500 tourism entrepreneurs; (ii) restoring 25,000 hectares (ha) of community forests via performance-based payment for ecosystem services (PES) for 3,500 beneficiaries; (iii) supporting 3,400 farmers to adopt climate-smart practices and rehabilitate 1,700 ha of degraded and fallow land, along with 170 drip irrigation systems and 28 processing and post-harvest infrastructure facilities; (iv) strengthening 170 agriculture integrated village cooperative societies (IVCSs) and 14 tourism cooperative societies; and (v) establishing operation and maintenance (O&M) public–private partnerships (PPPs) for six visitor centers and providing advisory support.

The project will have three outputs:

Output 1: Nature-based tourism infrastructure and services developed. The project will support the development of climate- and disaster-resilient public infrastructure and services in six tourism clusters. It will create enabling conditions for the private sector to invest in nature-based tourism operations in these clusters. Infrastructure investments will include (i) constructing 12 nature-based ecotourism visitor facilities that will serve as interpretation centers, and display and demonstration areas for traditional crafts and skills, and marketplaces for local crafts and agricultural products; (ii) constructing public utilities, including water supply and sanitation, waste management, solar-powered lighting, landscaping, and streetscaping of public areas; and (iii) upgrading hiking trails with signage. The services will include developing (i) a digital platform for tourism-related information dissemination, (ii) tourism itinerary and destination promotion digital and printed material, and (iii) training in hospitality management and services targeting women. Developing nature-based tourism infrastructure supports climate resilience, environmental sustainability, and inclusive growth by diversifying livelihoods.

Output 2: Sustainable forest and land management enhanced. This will strengthen sustainable forest management and promote the adoption of climate-smart and sustainable farming practices by providing incentives to communities. Landowners with forest land plots will be paid to improve forest management practices through a PES mechanism. The PES mechanism—known as Grassroots level Response towards Ecosystem Enhancement and Nurturing (GREEN) Meghalaya—was operated in Meghalaya by MBMA from 2022 to 2024. This mechanism helped in conserving forest cover of 54,000 ha through a participatory approach. The project aims to implement conservation efforts across an additional 25,000 ha of community land in 13 blocks, converting them into sustainably managed forest areas. This will be achieved through implementation of a performance-based PES mechanism benefiting 3,500 landowners, each owning 1 ha or more of forest land.25 Key activities include (i) assessing and valuing the ecosystem services for sustainable management of forest lands; (ii) establishing block-level scientific forest management plans; (iii) implementing an expanded PES scheme; (iv) developing financing options to enhance the sustainability of the PES mechanism by expanding the financing sources (e.g., through revenues from tourism fees or from carbon markets and biodiversity credits or similar innovative revenue sources); and (v) strengthening monitoring, reporting, and verifying the PES mechanism through adoption of advanced technology and field verification.

The project will also support 3,400 smallholder farmers to adopt resource-efficient and climate-smart natural farming practices and thereby rehabilitate about 1,700 ha of existing degraded farmlands and underutilized fallow lands into productive, sustainable, and natural farmlands. Activities will include (i) assessing suitability for collective farming, evaluating the potential to produce high-value crops, and selecting 170 collective farms, each managed by IVCSs; (ii) supporting land preparation (sloping agricultural land technology) and developing about 170 drip irrigation systems, each serving up to 10 ha; (iii) providing matching grants to promote good agricultural practices, including preproduction and production inputs such as climate-resilient quality planting materials, intercropping, natural and organic agricultural inputs, and tools, as well as constructing and providing processing and post-harvest management infrastructures for value addition; (iv) establishing geographic indications for select crops and supporting organic and natural farming certification; (v) enhancing market linkages (e.g., identifying market-based stakeholders, branding, participation in buyer-seller meetings, and collaborating with organizations like the National Association for Farmer Producer Organizations); and (vi) establishing a management information system. This output supports climate resilience and environmental sustainability by promoting scientific forest management, soil and water conservation, and income diversification.

Output 3: Capacities for nature-based livelihoods improved. This output will strengthen the capacity, including financial management, of local communities to enable and empower them to become more involved in the economic activities promoted by outputs 1 and 2. Key activities include (i) strengthening farmer producer organizations and cooperatives, including 170 IVCSs and 14 tourism cooperatives, training a targeted 3,400 farmers on climate-resilient, sustainable practices, and good agriculture practices; (ii) strengthening promotion and incubation of market-driven enterprises hubs, which will offer mentoring and incubation in partnership with the private sector and the Livelihood Improvement Finance Company of Meghalaya; (iii) supporting sustainable O&M of six nature-based tourism visitor facilities, under PPPs through upstream and/or advisory support; and (iv) providing training and capacity-building programs for staff of the implementing agencies. Additionally, an innovation fund will be established to promote tourism entrepreneurs, agricultural value-added businesses, forest management, research and development, digital innovations, and gender-focused initiatives. Supporting nature-based livelihoods builds climate resilience and sustainability by empowering agricultural and tourism groups. This approach diversifies income, encourages resilient economies, and uses innovation funds and training—especially for women—to promote inclusive entrepreneurship.

The ADB categorized the project E&S risks as follows:

Environment - B
Involuntary Resettlement - C
Indigenous Peoples - B

ADB Team Leader:

Sumit Pokhrel
Email: spokhrel@adb.org 

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