Asian Development Bank Loan 41607-IND: Mizoram Public Resource Management and Development Program

Tripartite Review Mission

Aide Memoire I. INTRODUCTION 1. A tripartite review mission1 (the Mission) for the proposed Mizoram Public Resource Management and Development Program (MPRMDP or the Program) visited Aizawl from 16–19 June 2008. The objective of the Mission was to (i) present the findings of the draft final report of the Project Preparatory Technical Assistance (PPTA) at the final workshop; (ii) receive feedback from the Government of Mizoram (the Government) on proposed recommendations in the report; and (iii) identify the next steps and proposed timetable for the loan processing. The workshop was chaired by the Finance Commissioner and included participation from Government officials from the various concerned departments and representatives of public sector enterprises. The Mission also acknowledges with deep appreciation the address to the workshop from the Chief Minister of Mizoram. In addition to Government officials, there was participation from representatives of (i) the Department of Expenditure, Ministry of Finance, Government of India (GOI), and (ii) Institute of Government Accounts and Finance (INGAF), the training wing of the Department of the Controller General of Accounts, GOI. The list of people met is included in Appendix 1. 2. This Aide Memoire (AM) records discussions and findings of the Mission. The recommendations and proposals set forth under this AM are subject to the approval of higher authorities of the Government and the Asian Development Bank (ADB). II. FINDINGS A. Summary of Workshop 3. The workshop presented the findings from a team of six experts who had worked in close coordination with Government officials over a two months period with one or multiple site visits to Aizawl and under the overall guidance and supervision from the Mission. The workshop was deemed by participants to have provided an effective venue for exchanging views and ideas on possible policy reforms under the proposed MPRMDP. Most sessions included frank and constructive discussions on desirability of proposed reforms, feasibility of reforms, and supporting measures for implementation of such reforms. The Mission was encouraged by the participation of Government officials and the overall level of engagement. As this was the first exposure of Government officials to a state-level policy reform program, the Mission was of the view that convening such a workshop had been able to effectively address many of the Government concerns on the nature of program lending and provide further clarity in the lead-up to the development of a policy framework. 4. The Mission stressed that the policy framework would build on the recommendations presented at the workshop and the feedback provided by the Government and the Mission. In particular, the policy framework would pursue the parallel objective of improving service delivery

1 The Mission comprised B. Carrasco (Director, Regional Cooperation and Country Coordination Division and

formerly Principal Economist/Mission Leader) and H. Mukhopadhyay (Senior Economics Officer), India Resident Mission.