The official end of armed hostilities between insurgents and the Bangladesh military in 1997, post-conflict development interventions by international donors and the Government of Bangladesh, along with a greater emphasis on local ownership over peacebuilding interventions, as expressed in the Rangamati Declaration (1998), have given birth to the onset of NGO peacebuilding in the Chittagong Hill Tracts (CHT). This article argues that the aid flow has not only transformed community-based organizations into project-based local NGOs, but has also bred a new generation of profit-oriented and donor-driven local NGOs. This article concludes that NGO implementation of development projects and advocacy for human rights, despite being mostly effective in its identification of local needs, is severely affected by three major risk factors: legitimacy, security, and sustainability.