Manila: Traditional financing models are proving ineffective in addressing the unique challenges faced by island states, as articulated by Jingmin Huang, Director for ADB's Water and Urban Development Sector Office. During a special session titled 'Inclusive Urban Resilience, Blue Economy and Sustainable Tourism in Small Island Developing States' at WUF13, Huang highlighted the limitations of these models due to the small size of markets, high construction costs, limited budget opportunities, and recurring natural disasters that plague these regions.

According to Azeri-Press News Agency, Huang emphasized that a combination of concessional loans, grants, technical assistance, and blended financing instruments should be utilized to enhance financial effectiveness in small island states. These mechanisms are crucial for addressing not just the construction projects but also for tackling issues related to land governance, infrastructure, and climate risks in an integrated manner.

The ADB official underscored the importance of international partnerships in resolving the financial challenges of small island states. Many projects in these regions are being implemented with the collaborative support of various financial institutions, showcasing the need for a unified approach. Furthermore, Huang pointed out that tourism, housing, and urban services should be perceived as interlinked components within a comprehensive development strategy, rather than as isolated sectors.