The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Justice for Business Project (P167247) EUROPE AND CENTRAL ASIA | Croatia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 2 | ARCHIVED on 11-Jan-2021 | ISR44903 | Implementing Agencies: Republic of Croatia, Ministry of Justice and Public Administration (MoJPA), Ministry of Physical Planning, Construction and State Assets (MoPPCSA), Ministry of Economy and Sustainable Development (MoESD) Key Dates Key Project Dates Bank Approval Date: 31-Mar-2020 Effectiveness Date: 29-Jun-2020 Planned Mid Term Review Date: 01-Dec-2022 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2025 Revised Closing Date: 30-Jun-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the business regulatory procedures and justice service standards for businesses andcitizens. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Reducing the administrative burden for businesses to interact with government Improving justice services for businesses and citizens Project Management and Technical Assistance Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Following the Board approval of the loan on March 31, the Government and the Bank signed the loan on April 15 and the project was subsequently ratified by the Croatian Parliament on May 18. The project became effective on June 29, 2020. The Project Implementation Unit in the Ministry of Justice and Public Administration has been established with the Project Manager, the Engineer and the procurement and financial management specialists. The Project Operational Manual was revised and completed. The Government is in the process of finalizing the appointment of the Steering Committee with members from the Ministry of Justice and Public Administration (MoJPA), Ministry of Economy and Sustainable Development (MoESD), Ministry of Physical Planning, Construction and State Assets (MoPPCSA), Ministry of Finance (MoF). 1/11/2021 Page 1 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improvement of business regulatory procedures IN00934877 ►Time and number of procedures to register an LLC (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional 20% 19.5 days and 7 19.5 days and 7 19.5 days and 7 reduction (30% of Value procedures to start an procedures to start an procedures to start an baseline) in the time LLC LLC LLC and procedures for registering LLCs Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 30-Dec-2022 Comments: Measured as percentage reduction in time and the number of procedures IN00934879 ►Percentage of licenses with information on licensing requirements published online (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/11/2021 Page 2 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 0 percent licensed 0 percent licensed 0 percent licensed activities with online activities with online activities with online Value 75% information on licensing information on licensing information on requirements requirements licensing requirements Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Comments: Number of licenses that can be applied for and obtained online IN00934896 ►Number of procedures to obtain a construction and a use permit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional 20% reduction (35% from 22 procedures to 22 procedures to obtain 22 procedures to obtain a the baseline) in the obtain a construction Value a construction permit and construction permit and a number of procedures permit and a use a use permit use permit to obtain a permit construction and a use permit Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Measured as percentage reduction in the number of procedures. The Doing Business report 2021 (DB21) has not been published in October 2020 as expected to verify the improvement of the number of Comments: procedures (DB20) result that has been used as a baseline for this value. Improvement of justice service standards for businesses and citizens IN00934878 ►Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 240 days (25% 320 days Value 282 days 307 days reduction) Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2023 Percentage of reduction of Disposition time for the issuance of judicial decisions in first instance cases before the commercial courts. The data reported in Previous column refers to the period January- Comments: December 2019. IN00934880 ►Court users’ and stakeholders’ satisfaction with respect to service delivery in the four selected courts (citizen engagement indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 20% increase in user TBD (The baseline will TBD (The baseline will TBD (The baseline will and stakeholder be set by the results of be set by the results of a be set by the results of a satisfaction from the Value a survey to be survey to be conducted survey to be conducted baseline in the four conducted after loan after loan effectiveness) after loan effectiveness) court facilities where effectiveness) renovation is done Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2024 Measured through a survey as court users’ and stakeholders’ satisfaction with respect to the quality of justice service delivery in the four selected courts. It is expected first survey to be conducted in the first Comments: quarter of 2021 that would inform the baseline. 1/11/2021 Page 3 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Intermediate Results Indicators by Components 1.1. Removing regulatory barriers for market entry and operation IN00934900 ►Implementation of a single digital window for LLCs (DLI 1) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target A single digital window, which can be accessed from different entry points, is the only system for the completion of all A single digital window A single digital window the formalities required The single digital window that offers online that offers online by the 5 agencies Value for LLCs is not business registration for business registration (Commercial Court operational Crafts and LLCs is for Crafts and LLCs is Registry, Tax operational. operational. Administration, Statistics, Pension and Health Insurance) to start an LLC and registration of at least five types of changes. Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Comments: The single digital window is operational. IN00934907 ►Number of changes for LLCs that are digitalized through the single digital window (e.g. change in address, name, directors, voluntary liquidation) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Key changes for LLCs that can be registered online. Expected only in year 2 of the project Comments: IN00934908 ►Percentage of new LLCs disaggregated by gender (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 LLCs disaggregated by gender. Expected only in year 3 of the project. Comments: IN00934909 ►Beneficiary satisfaction with business registration services offered through single digital window(citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/11/2021 Page 4 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Value 0.00 0.00 0.00 60.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Satisfaction survey on business registration services. Expected only in year 2 of the project Comments: IN00934911 ►Beneficiary satisfaction with the online information licensing platform (citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Satisfaction survey on licensing online informational platform Comments: IN00934912 ►Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target An online informational portal with licensing There is no online requirements is There is no online There is no online informational licensing operational informational licensing informational licensing portal; 0 licenses Value portal; 0 licenses portal; 0 licenses published Licensing for 15 published published online/digitalized business activities is online/digitalized online/digitalized digitalized and transactional Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 30-Dec-2022 Licensing requirements are published online and the number of licenses that can be applied for and obtained online. New licensing (information) portal is expected to be published in 2021. Expected only in Comments: year 2 of the project. 1.2. Simplifying construction permitting and improving market functioning in the construction sector IN00934901 ►Simplifying construction permitting (DLI 3a) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target E-Dozvola platform reflects simplified construction permitting E-Dozvola platform is not E-Dozvola platform is not E-Dozvola platform is procedures and is operational in the city of Value operational in the city of not operational in the upgraded to include Zagreb Zagreb city of Zagreb the “E-Construction Logbook” and issuance of the use permit Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 E-Dozvola platform is operational at the national level. No information on the status of the implementation Comments: of the eDozvola in the City of Zagreb has been received. 1/11/2021 Page 5 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) IN00934904 ►Simplifying requirements for the provision of professional services in the construction sector (DLI 3b) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least one At least one 0 requirements are At least one requirement requirement for each requirement for the 2 simplified in the provision for the 2 professions in of the 4 additional Value professions in the of professional services the construction sector is professions in the construction sector is in the construction sector simplified construction sector is simplified simplified Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 30-Dec-2022 6 requirements are simplified in the provision of professional services in the construction sector. Comments: 2.1. Expanding the use of electronic services in the justice sector IN00934897 ►Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Misdemeanor departments within municipal courts and administrative courts are not integrated in the Four Administrative ICMS Courts and the High All commercial courts (9) Administrative Court integrated in ICMS are integrated in ICMS; Value a.0; b.0; c.31 a.34; b.0; c.31 and at least nine All commercial courts additional municipal use e-communication courts use the e- with lawyers, courts communication system experts and bankruptcy (2021). trustees. 2 municipal courts use e- communication system. Date 31-Dec-2019 30-Jun-2020 14-Dec-2020 31-Dec-2021 Number of courts and courts departments integrated in ICMS. All (34) municipal courts with misdemeanor Comments: departments were integrated in ICMS. IN00934903 ►Percentage of e-briefs in total number of commercial courts briefs (communication of the courts with parties to the proceedings) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.59 35.85 40.48 45.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2024 Percentage of e-briefs in total number of commercial courts briefs (communication of the courts with parties to the proceedings).Percentage of e-briefs in total number of commercial courts briefs Comments: (communication of the courts with parties to the proceedings). The increased uptake was driven by the lockdown due to the Covid-19 pandemic and damaged judicial buildings due to the Zagreb quake. 1/11/2021 Page 6 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 2.2. Improving efficiency of dispute resolution in municipal and commercial courts IN00934898 ►Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 30% reduction with Value 9131 cases 8167 cases 8792 cases respect to the baseline Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2022 Percentage of reduction of courts backlog. Due to the Covid-19 lockdown, courts, especially municipal courts which are courts with the highest rates of backlog had suspended judicial actions pursuant the Civil Comments: Proceedings Act and recommendations issued by the Ministry of Justice. The data reported in Previous column refers to the period January-December 2019. IN00934906 ►Percentage of cases older than 10 years against the total number of unresolved/pending cases (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.55 2.20 2.24 1.50 Date 31-Dec-2019 30-Jun-2020 14-Dec-2020 31-Dec-2024 Percentage of cases older than 10 years against the total number of unresolved/pending cases. The data Comments: reported in Previous column refers to the period January-December 2019. 2.3. Rehabilitation and upgrading of selected court facilities IN00934905 ►Improvement in energy efficiency certificate grade (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Zagreb – Energy Efficiency Certificate: Zagreb - Energy Zagreb - Energy C Zagreb - Energy Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: F Varazdin – Energy Varazdin - Energy Varazdin - Energy Efficiency Certificate: Varazdin - Energy Efficiency Certificate: F Efficiency Certificate: F C Efficiency Certificate: F Value Kutina - Energy Kutina - Energy Kutina – Energy Kutina - Energy Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: Efficiency Certificate: F C Vinkovci - Energy Vinkovci - Energy Vinkovci - Energy Efficiency Certificate: F Efficiency Certificate: F Vinkovci – Energy Efficiency Certificate: F Efficiency Certificate: C Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2024 Improved energy efficiency through reduced primary energy, heating, cooling and water consumption Comments: following reconstruction of courts IN00934910 ►User satisfaction with the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Court (Text, Custom) 1/11/2021 Page 7 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Baseline Actual (Previous) Actual (Current) End Target TBD (A baseline TBD (A baseline survey TBD (A baseline survey survey will be carried 30% increase in user will be carried out after will be carried out after Value out after effectiveness satisfaction from the effectiveness to effectiveness to to determine the baseline determine the baseline.) determine the baseline.) baseline.) Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2024 Satisfaction survey on the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Court. It is expected first survey to be conducted in the first semester of 2021 that would inform the Comments: baseline. 2.4. Strengthening Public Investment Management practices in the judiciary IN00934899 ►Rollout of the investment and facility management application for the judiciary (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Investment and facility Investment and facility Investment and facility management application management management application for the judiciary has not application for the Investment and facility for the judiciary has not been developed / rolled judiciary has not been management been rolled out. out yet. Technical developed / rolled out Value application for the specifications prepared yet. Technical judiciary has been Technical specifications for procurement process specifications rolled out prepared for and currently preparation prepared for procurement process of tender documentation procurement process for public consultation. are being updated. Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2023 Comments: The module for budget planning and execution as well as capital investment planning is rolled out Citizen Engagement IN00934902 ►Number of outreach events organized (citizen engagement indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Dec-2019 30-Jun-2020 30-Nov-2020 31-Dec-2023 Citizen engagement events organized (for instance, focus groups, court open days and workshops at select court sites). Participants will be surveyed regarding their satisfaction with the effectiveness of the Comments: citizen engagement process. Expected only in year 3 of the project. Performance-Based Conditions IN00934913 1/11/2021 Page 8 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) ►PBC 1 Implementation of a single digital window for LLCs (DLI 1) (Text, Output, 11,030,000.00, 10%) Baseline Actual (Previous) Actual (Current) 5 years A single digital window A single digital window that offers online The single digital window that offers online business Value business registration for -- for LLCs is not operational registration for Crafts and Crafts and LLCs is LLCs is operational. operational. Date -- 30-Jun-2020 30-Nov-2020 -- IN00934914 ►PBC 2 Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Output, 5,515,000.00, 5%) Baseline Actual (Previous) Actual (Current) 5 years There is no online There is no online There is no online informational licensing informational licensing informational licensing Value portal; 0 licenses published portal; 0 licenses portal; 0 licenses -- online/digitalized published published online/digitalized online/digitalized Date -- 30-Jun-2020 30-Nov-2020 -- IN00934915 ►PBC 3 Simplifying construction permitting (DLI 3a) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years a. E-Dozvola platform is not operational in the city E-Dozvola platform is not of Zagreb E-Dozvola platform is not operational in the city of b. At least one Value operational in the city of -- Zagreb requirement for the 2 Zagreb professions in the construction sector is simplified Date -- 30-Jun-2020 30-Nov-2020 -- IN00934916 ►PBC 4 Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Output, 5,515,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years Value Misdemeanor departments a.0; b.0; c.31 a.34; b.0; c.31 -- within municipal courts and administrative courts are not integrated in the ICMS 1/11/2021 Page 9 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) All commercial courts (9) integrated in ICMS All commercial courts use e-communication with lawyers, courts experts and bankruptcy trustees. 2 municipal courts use e- communication system. Date -- 30-Jun-2020 14-Dec-2020 -- IN00934917 ►PBC 5 Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years 20% reduction with Value 9131 cases 8167 cases 8792 cases respect to the baseline Date -- 30-Jun-2020 30-Nov-2020 -- IN00934918 ►PBC 6 Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Output, 11,030,000.00, 10%) Baseline Actual (Previous) Actual (Current) 5 years 320 days Value 282 days 307 days -- Date -- 30-Jun-2020 30-Nov-2020 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P167247 IBRD-90570 Effective USD 110.30 110.30 0.00 0.00 110.30 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P167247 IBRD-90570 Effective 31-Mar-2020 15-Apr-2020 29-Jun-2020 30-Jun-2025 30-Jun-2025 1/11/2021 Page 10 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/11/2021 Page 11 of 11