$ Report No: RES00405 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Improving the Performance of Non-Criminal Justice Services APPROVED ON 05-Jun-2019 TO Republic of Peru Governance Latin America And Caribbean Regional Vice President: Carlos Felipe Jaramillo Regional Director: Oscar Calvo-Gonzalez Country Director: Issam A. Abousleiman Practice Manager: Alberto Leyton Task Team Leader(s): Ruben Leonel Ruano Chinchilla, Carolina Luisa Vaira The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) ABBREVIATIONS AND ACRONYMS ALEGRA Free Legal Assistance Centers (Centros de Asistencia Legal Gratuita) AMAG Judicial Training Academy (Academia de la Magistratura) DA Designated Account EJE Judicial Electronic File (Expediente Judicial Electrónico) EBA Enterprise Business Architecture FM Financial Management GoP Government of Peru IBRD International Bank of Reconstruction and Development ISR Implementation Status and Results Report IFR Interim Financial Report IT Information Technology JNJ National Justice Board (Junta Nacional de Justicia) LAC Latin America and the Caribbean MEF Ministry of Economy and Finance (Ministerio de Economía y Finanzas) MINJUSDH Ministry of Justice and Human Rights (Ministerio de Justicia y Derechos Humanos) PDO Project Development Objective PIU Project Implementation Unit PJ Judiciary (Poder Judicial) SCD Systematic Country Diagnostic SIGE Integrated Case Management System (Sistema Integrado de Gestión de Expedientes) STEP Systematic Tracking of Exchanges in Procurement TC Constitutional Tribunal (Tribunal Constitucional) UE Executing Unit (Unidad Ejecutora) WB World Bank The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Improving the Performance of Non-Criminal Justice P162833 Services Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Peru Approval Date Current Closing Date 05-Jun-2019 30-Sep-2024 Original EA Category Partial Assessment (B) (PAD Approval Package-05 Jun 2019) Organizations Borrower Responsible Agency Republic of Peru Judiciary of Peru, Ministry of Justice and Human Rights @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The Project’s development objective is to improve efficiency, access, transparency, and user satisfaction, in the delivery of adequate non-criminal justice services. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed IBRD 85.00 20.81 64.19 24.48 IDA -- -- -- 0 i The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................3 IV. DETAILED CHANGE(S) ...............................................................................................................................................3 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Restructuring Paper (RP) seeks the Country Director's approval for a Level 2 restructuring. The objectives of the restructuring are to: (a) extend the closing date by 11 months to August 31st, 2025, (b) make minor revisions to the results framework, and (c) update the disbursement schedule. A. Project Status 2. The project was approved by the Board of Executive Directors on June 5, 2019. The Loan Agreement (Loan No. 8975-PE) was signed on November 27, 2019, and became effective on December 12, 2019. The estimated cost of the project is US$158 million, with the Bank providing US$85 million in financing and the Government of Peru contributing the remaining US$73 million. To date, disbursements have reached US$20.81 million, representing 24.5% of the US$85 million loan. The project was significantly impacted by the COVID-19 pandemic, political instability, and administrative bottlenecks, which slowed down funding and disrupted the normal operations of the project implementation units (PIUs), particularly during the first two years of implementation. Consequently, the project has shown uneven progress across its various components, as documented during the Mid-Term Review (MTR) conducted in April 2024. The summary of the progress is as follows: a. Component 1 and 2: Strengthening the institutionality of the non-criminal justice administration system and improving the production, analysis, and use of information of the justice administration. The Judiciary (PJ) revised its judicial and administrative processes to enhance efficiency and performance and conducted an enterprise architecture assessment to inform the development of the new case management platform (EJE No Penal). The WB recently granted a No Objection to the bid evaluation for the EJE No Penal platform, concluding an 18-month period from defining the terms of reference (TOR) to finalizing the procurement process. This period faced challenges such as delays in deciding on a Commercial Off-The-Shelf (COTS) solution over in-house development and completing extensive technical work to inform TORs. The EJE platform's implementation is expected to take an additional 30 months. The PJ's digital ecosystem, including a statistical information system and judicial portal, remains mostly conceptual due to dependencies on the EJE Platform and limited technical capacity. Nationwide integration of non-criminal specialties into the EJE platform is prioritized. The Constitutional Tribunal (TC) has made significant strides in digitizing case management and enhancing infrastructure, with future efforts focusing on performance monitoring and integrating with the EJE Platform. The National Board of Justice (JNJ) has published standards for judge evaluation but has made limited progress in other areas. b. Component 3: Reducing socio-economic, cultural, and geographic barriers to access to justice for vulnerable populations. Steady progress has been made on the Free Legal Assistance Centers (ALEGRAS) program, with 17 out of 45 centers refurbished and user satisfaction exceeding 80%. Digitalization is slower, with a business process review expected in 2024 to inform the new information management system, requiring additional time for full implementation. The Mobile Justice program has expanded from 8 to 34 Superior Courts, providing IT kits and training. The program's holistic benefits are recognized, Congress institutionalized the Mobile Justice initiative with legislation, and the project will support implementing regulation. c. Component 4: Improving efficiency and efficacy of the justice administration system institutions. Judicial Training Academy (AMAG) has faced challenges due to constant leadership changes and limited technical capacity, leading to a revised work program focused on curriculum review, remote learning platform improvement, and classroom rehabilitation. The change management program has seen mixed success, with effective engagement at ALEGRAs, TC, and Mobile Justice, but challenges at PJ, JNJ, and AMAG. Future efforts will enhance strategies to engage all project beneficiaries effectively. Page 1 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) 3. As of September 2024, the project’s development objective (PDO) is rated as Moderately Unsatisfactory (MU), mainly due to delays in achieving key results by the current closing date. Implementation Progress, however, is rated Moderately Satisfactory (MS), with gradual improvement observed after initial setbacks in the first two years of implementation. With the awarding of the contract for the development of the EJE No penal and the proposed extension, achievement of the PDO would be back on track and the PDO rating would be upgraded. 4. Additionally, the project is rated Moderately Satisfactory (MS) in financial management, Moderately Satisfactory (MS) in procurement, and Satisfactory (S) in compliance with social and environmental safeguards. The latest ISR confirms that financial management arrangements are in place, with no outstanding audit reports and satisfactory Interim Financial Reports (IFRs). As of September 2024, disbursements have reached US$ 20.81 million (24.5% of the US$ 85 million loan). Both PIUs document expenditures monthly to reflect implementation progress. Financial Management Specialists (FMSs) from PJ and Ministry of Justice and Human Rights (MINJUSDH) receive continuous support from the Bank's FM team and participated in a May 2024 FM workshop. Procurement has maintained a moderately satisfactory rating since inception. Despite delays due to complex institutional arrangements and technical input requirements, PJ, with close support from the Bank through HEIS (Hands-on Expanded Implementation Support), is close to awarding a key process for the design and implementation of EJE. HEIS has strengthened capacity and addressed implementation constraints, particularly for international bidding and software solutions. Environmental and social safeguards (OP 4.01 and OP 4.10) are managed through an Environmental and Social Management Framework and an Indigenous Peoples Planning Framework, with E&S Management Plans prepared for civil works and a grievance mechanism in place. These measures remain appropriate as the restructured project does not alter the risk rating or type of E&S impacts. B. Rationale for Restructuring 5. In a letter dated September 20th, 2024, the Ministry of Economy and Finance (MEF) requested a first extension of the closing date for 11 months to August 31st, 2025. The PIUs, in collaboration with the Multiannual Investment Programming Directorate (DGPMI) of MEF, have pre-agreed on a revised plan to complete the work program by September 30, 2026. Considering that the loan’s first repayment is scheduled for September 15, 2025, the MEF has requested an extension to August 31, 2025. It is also important to note that the loan is set to be fully amortized by September 15, 2027, making any extension beyond December 31, 2026, unfeasible. 6. The extension will provide the necessary time to overcome challenge encountered during the first years of project implementation and advance core activities. While progress has been made, additional time is required to assess whether incremental advancements can evolve into sustainable momentum towards achieving the project development objectives. A two-phase extension strategy addresses this need. During the extended period, project counterparts must fulfill several conditions, including maintaining moderately satisfactory project performance, ensuring that there are no overdue audits or financial reports, and completing agreed-upon actions essential for the project's success. II. DESCRIPTION OF PROPOSED CHANGES 7. This is the first project restructuring. The restructuring includes: (i) an extension of the closing date by 11 months to august 31st 2025, (ii) minor revisions to the results framework, and (iii) a revision of the disbursement schedule to align with the new implementation plan. Extending the closing date to August 31, 2025, will help bring the project to a critical juncture before evaluating the need for a longer extension to complete the work program. Minor revisions to the intermediate indicators will better align the project benefits with its monitoring framework and correct errors and miscalculations in the original baseline and target values. The updated disbursement schedule will be aligned with the revised plan presented by the PIUs. Page 2 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Closing Date Extension Yes Disbursements Estimates Yes Implementation Schedule Yes Development Objective No Loan Cancellations No Safeguard Policies Triggered No Reallocations No ISDS No Financial Management No MFD/PCE No Procurement No Risks No Institutional Arrangement No Legal Covenants No Conditions No Implementation Modalities No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? Page 3 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IBRD-89750-001 Effective 30-Sep-2024 30-Sep-2024 31-Aug-2025 31-Dec-2025 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Restructuring, Change in Pace of Implementation Implementation Start Date Operation Closing Date 05-Jun-2019 30-Sep-2024 Projected Date for Full Disbursement 30-Jan-2026 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 05 Jun 2019) FY2019 0.00 0.00 0.00 FY2020 8,500,000.00 0.00 0.00 FY2021 12,120,000.00 364,814.00 364,814.00 FY2022 20,000,000.00 6,236,082.00 6,236,082.11 FY2023 25,000,000.00 5,661,246.00 5,661,246.00 FY2024 19,380,000.00 8,547,765.00 8,547,765.00 FY2025 0.00 28,028,757.00 0.00 FY2026 0.00 36,161,336.00 0.00 Page 4 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) RESULTS COUNTRY: Peru Improving the Performance of Non-Criminal Justice Services @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Improved efficiency in the resolution of non-criminal cases Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Processing time between the 21.10 Jun/2018 24.85 30-Jun-2024 24.85 30-Jun-2024 17.50 Sep/2024 presentation of a claim and the Comments on achieving targets No major improvements are expected before the adoption of the To-Be processes supported by the deployment decision that resolves the case (not of the EJE platform. The UE proposes that the target be revisited during project restructuring to account for the including the enforcement period) in unknown source of the base and delays in the implementation of the EJE courts where EJE will be implemented (Months) Increased access to justice Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 66 Apr/2021 71 31-Jan-2024 71 31-Jan-2024 81 Jun/2024 Percentage of female users satisfied with the services provided at the Comments on achieving targets A new satisfaction survey has been recently finalized with preliminary results reported by the UE; The ALEGRAs (Text) development and implementation of a new system, including a feature for allowing a two-way communication with the ALEGRAs will start development in 2024 Increased transparency of non-criminal justice services Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Page 5 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) Not available Jun/2018 37 31-Jan-2024 37 31-Jan-2024 70 Sep/2024 Comments on achieving targets Baseline survey was completed in May 2023, which revealed that 37% of court users reported having online access to their cases. However, this percentage varies by type of user. While 92% of surveyed lawyers indicated Percentage of users who access their that they could access some information about their cases online, only 25% of citizens/justice users have some case file and case status online online access to their cases, and only 13.6% of indigenous people access information about their cases online. (Text) Once the deployment of the EJE commences in the second half of 2024, one of the first functions to be made available in selected jurisdictions (civil, labor, and family courts) is the online access to case files and case status. EJE will be able to keep track and report on the number and percentage of users accessing their case files online and provide these statistics with options of visualization of the data for dissemination purposes increased user satisfaction with the delivery of non-criminal justice services Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Percentage of users satisfied with the Not available Jan/2023 47.40 31-Jan-2024 47.40 31-Jan-2024 65 Sep/2024 service provided in a representative Comments on achieving targets The findings of the baseline survey were presented in May 2023. Based on the initial findings and as the sample of non-criminal courts development and deployment of the platform for the EJE advance new data will be collected to update this (Text) indicator and track progress every six months. Intermediate Results Indicators by Components Component 1: Strengthening the institutionality of the non-criminal justice administration system Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 5.00 Dec/2018 0 30-Jun-2024 0 30-Jun-2024 100.00 Aug/2024 Percentage of non-criminal jurisdictional units where EJE has Comments on achieving targets No progress as EJE Platform implementation is expected to start in Q4-2024. Revising the target value of this been implemented (Percentage) indicator should be considered for project restructuring. As per the implementing agency latest calculation, new possible target could be 75% of Jurisdictional units Currently only Dec/2018 The new judiciary 30-Jun-2024 The new judiciary 30-Jun-2024 All judgements are Jun/2024 Creation of a portal where all the judgements of the portal is still in the portal is still in the published and judgements are published and Supreme Court and conceptualization conceptualization indexed in a portal indexed in an easily searchable a few Superior stage stage which allows citizens manner (Text) Courts are Page 6 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) published. The to search search functions are information easily. limited. Comments on achieving targets The PJ currently has this service, but it needs to be updated. The new portal is part of the Judiciary Digital ecosystem that is being designed to support and extend the services of the EJE Currently the PJ Dec/2018 ToRs are finalized 31-Jan-2024 ToRs are finalized 31-Jan-2024 Regular conduct of Jun/2024 does not have and the and the gender gap analyses enough information procurement of the procurement of the informs policy for identifying consultancy firm to consultancy firm to decisions that aim to gender gaps and conduct this work conduct this work enhance women's Gender gap analyses inform policy making policy will be launched end will be launched end experience in courts decisions that aim to enhance decisions of January 2024. The of January 2024. The women's experience in courts field work and the field work and the (Text) presentation of the presentation of the final report is final report is expected by July expected by July 2024 2024 Comments on achieving targets Reports using administrative and court user survey data to synthesize differences in the treatment of women and men 761.00 Dec/2018 340 30-Jun-2024 340 30-Jun-2024 404.00 Jun/2024 Time elapsed between the receipt of Comments on achieving targets The TC continues to improve the time elapsed from when the cases are received from the PJ and resolved by the case from PJ and the issuance of the TC. While some of the initial reduction in the time to resolve cases was due to changes in procedures and the final decision at TC (Days) criteria used for reviewing cases, the subsequent reduction in time recorded is partially attributed to the IT and system improvements supported by the project. The indicator will continue be monitored to trace a full attribution to the project to confirm the achievement Component 2: Improving the production, analysis and use of information of the justice administration system Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year The PJ does not Dec/2018 The statistical 30-Jun-2024 The statistical 30-Jun-2024 Statistical system Dec/2023 An optimal statistical system have an adequate system is part of the system is part of the contribute to the designed and implemented which statistical system for PJ digital ecosystem PJ digital ecosystem monitoring and contributes to the monitoring and the monitoring and that is currently in that is currently in control of processes control of processes of the PJ (Text) control of processes the the Page 7 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) conceptualization conceptualization stage. stage. Comments on achieving targets Scaling down or dropping the statistical system from the project scope should be considered for project restructuring. The TC does not Dec/2018 To Be business 30-Jun-2024 To Be business 30-Jun-2024 A dashboard Mar/2022 have proper processes have been processes have been designed for instruments for finalized. ToR for finalized. ToR for performance Indicators for monitoring performance information system information system monitoring performance of the TC designed and management upgrade will start upgrade will start implemented (Text) soon soon Comments on achieving targets Next steps is to define indicators based on to-be processes and consider them for the ToR for the new SIGE The JNJ has not Dec/2018 The JNJ has been 30-Jun-2024 The JNJ has been 30-Jun-2024 Standards and Dec/2022 been formally formed and has formed and has processes for established. published the published the periodic evaluation Standards and processes for periodic processes for processes for of judges published evaluation of judges published and evaluation of judge evaluation of judge and implemented by implemented (Text) performance. performance. the JNJ Comments on achieving targets The public and judges are aware performance standards and the system is applied fairly Component 3: Reducing socio-economic, cultural and geographic barriers to access to justice for vulnerable populations. Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Number of ALEGRAs with the 0.00 Dec/2018 0.00 30-Jun-2024 0.00 30-Jun-2024 49 Sep/2026 new management model Comments on achieving targets The process review is on-going and expected to be completed during the remainder of 2024. implemented (Number) 155,905 Dec/2020 191,233 30-Jun-2024 191,233 30-Jun-2024 204,133 Sep/2026 Comments on achieving targets Data received by the PIU based on the annual report of the ALEGRAS. Revise Number of requests received at 2021: 187,642 (127,342 consultations, 25,600 legal sponsorships and 34,700 conciliations) the ALEGRAs (Number) 2022: 168,427 (127,455 consultations, 32,400 legal sponsorships and 8,572 conciliations) 2023; 191,233 (138,186 (consultations, 40,571 sponsorships and 12,476 conciliations) 20.00 Dec/2018 83.70 30-Jun-2024 83.70 30-Jun-2024 50.00 Jun/2024 Page 8 The World Bank Improving the Performance of Non-Criminal Justice Services (P162833) Comments on achieving targets Year 2021: Consultations that ended in reconciliations: 34,700 (1,211 started and 1,105 concluded) Percentage of conciliations concluded Year 2022: Consultations that ended in reconciliations: 8,572 (5,113 started and 4,935 at the ALEGRAs (Percentage) concluded) Year 2023: Consultations that ended in reconciliations: 10,773 (2,332 started and 1,952 concluded) New Number of beneficiaries 7,527 Dec/2020 42,893 31-Dec-2023 79,034 Sep/2026 exercising civil rights and accessing government services through itinerant justice mechanisms (Number) Component 4: Improving efficiency and efficacy of the justice administration system institutions. Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 6,117 Feb/2019 6,117 30-Jun-2024 6,117 30-Jun-2024 10,195 Jun/2024 Revise Number of people who have Comments on achieving targets Due to COVID-19, AMAG moved all 2020-2022 (first semester);training online, resulting in a large increase in the completed courses through AMAG's number of people trained via e-learning (prior to the implementation of project activities). This number was e-learning platform per year adjusted and show a reduction since July 2022 until now; face to face clinics have been reinstated The base and (Number) target of this indicator should be review during project restructuring because of the distortions in the number of people who complete courses online due to the pandemic. Page 9