Document o f The World Bank FOR OFFICIAL, USE ONLY Report No: 47338-CO PROJECT APPRAISAL DOCUMENT ON A PROPOSED ADAPTABLE PROGRAM LOAN IN THE AMOUNT OF US$20 MILLION TO THE REPUBLIC OF COLOMBIA FOR A JUSTICE SERVICES STRENGTHENING PROJECT - PHASE I(APL1) N I SUPPORT OF THE FIRST PHASE OF THE JUSTICE SERVICES STRENGTHENING PROGRAM November 6,2009 Poverty Reduction and Economic Management Sector Management Unit Colombia and Mexico Country Management Unit Latin American and Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective as o f November 5,2009) Currency Unit = Peso (COP$) COP 1 = USD 0.000504796 USD 1 = COP 1,981 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS ADR Alternative Dispute Resolution ICB International Competitive Bidding AOP Annual Operating Plan ICR Implementation Completion Report APL Adaptable Program Loan ICT Information and Communications BdR Banco de la Republica (Borrower's Technology Central Bank) IDF Institutional Development Fund cc Constitutional Court IFR Interim Financial Reports CGR Contraloria General de la Repziblica JSDF Japan Social Development Fund (Comptroller General's Office) Justicia XXI Management model o f the Judiciary CONPES Conseio Nacional de Politica developed under the LIL Econdmicay Social (National Council LCR Latin America and the Caribbean for Economic and Social Policy) Region CPS Country Partnership Strategy LIL Learning & Innovation Loan CSJ Sala Administrativa- Consejo M&E Monitoring and Evaluation Superior de la Judicatura (Superior MHCP Ministerio de Hacienda y Crbdito Council o f the Judicature) Publico (Ministry o f Finance and cso Civil Society Organization Public Credit) DA Designated Account MIJ Ministerio de Interior y Justicia DdP Defensoria del Pueblo (Ombudsman's (Ministry o f the Interior and Justice) Office) MOU Memorandum o f Understanding DEAJ Direccibn Ejecutiva de NCB National Competitive Bidding Administracibn Judicial (Executive OM Operational Manual Directorate o f Judicial OACI Oficina Asuntos de Cooperacibn Administration) Internacional (International DNP Departamento Nacional de Cooperation Affairs Bureau) Planeacibn (Department o f National PCU Project Coordination Unit Planning) PGN Procuraduria General de la Nacibn EJRLB Escuela Judicial Rodrigo Lara (Solicitor General's Office) BonilIa (CSJ's Rodrigo Lara Bonilla PHRD Japan Policy and Human Resources Judicial School) Development Fund EU European Union SBD Standard Bidding Documents FGN Fiscalia General de la Nacibn SEPA Sistema de Ejecucibn de Planes de (Attorney General's Office) Adquisiciones (Procurement Plans FM Financial Management Implementation System). FMA Financial Management Assessment SIERJU Sistema Estadistico de la Rama GGF Grupo de Gestidn Financiera Judicial (Statistical System o f the (Financial Management Group) Judicial Branch) IADB Inter-American Development Bank FOR OFFICIAL USE ONLY SIIF Sistema Integral de Informacidn SOEs Statement o f Expenditures Financiera (Integrated Financial TORS Terms o f Reference Information System) UCJ Unidad de Carrera Judicial (CSJ's SIL Specific Investment Loan Judicial Career Unit) SINEJ Sistema Nacional de Estadisticas USAID United States Agency for International Judiciales (National System o f Development Judicial Statistics) Vice President: Pamela Cox Country Director: Gloria Grandolini Country Manager: Eduardo Somensatto Sector Leader: David Rosenblatt Sector Manager: Nicholas P. Manning Task Team Leader: David F. Varela This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization. REPUBLIC OF COLOMBIA JUSTICE SERVICES STRENGTHENING PROJECT CONTENTS Page . I STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ............................................................ ............................ 3 : C . Higher level objectives o f the Project ................................................................................. 7 . I1 PROJECT DESCRIPTION ................................................................................................. 8 A . Lending instrument ............................................................................................................. 8 B. Program objectives and phases ........................................................................................... 8 C . Project development objective and key indicators.............................................................. 9 D. Project components ........................................................................................................... 10 E. Lessons learned from the LIL and reflected in the Project design ................................... 14 F. Alternatives considered and reasons for rejection ............................................................ 15 I11 . IMPLEMENTATION .................................................................................................... 16 A . Partnership arrangements .................................................................................................. 16 B. Institutional and implementation arrangements ................................................................ 17 C . Monitoring and evaluation o f outcomes/results ................................................................ 18 . . . D. Sustainability ..................................................................................................................... 19 E. Critical risks and possible controversial aspects............................................................... 20 F. Loan conditions and covenants ......................................................................................... 21 IV . APPRAISAL SUMMARY ............................................................................................. 23 A . Economic and financial analyses ...................................................................................... 23 B. Technical........................................................................................................................... 23 C . Fiduciary ........................................................................................................................... 24 D. Environment ...................................................................................................................... 25 E. Safeguard policies ............................................................................................................. 25 F. Policy Exceptions and Readiness...................................................................................... 26 Annex 1: Country and SectorProgram Background .............................................................. 27 Annex 2: M a j o r Related Projects Financed by the Bank and/or other Agencies ................. 47 Annex 3: Results Framework and Monitoring........................................................................ 50 Annex 4: Detailed Project Description...................................................................................... 62 Annex 5: Project Costs ............................................................................................................... 75 Annex 6: Implementation Arrangements ................................................................................. 76 Annex 7: Financial Management and Disbursement Arrangements..................................... 79 Annex 8: Procurement Arrangements...................................................................................... 86 Annex 9: Economic and FinancialAnalysis ............................................................................. 90 Annex 10: Safeguard Policy Issues............................................................................................ 91 Annex 1 : Project Processing .................................................................................................... 1 92 Annex 12: Documents in the Project File ................................................................................. 94 Annex 13: Statement o f Loans and Credits.............................................................................. 96 ................................................................................................. Annex 14: Country at a Glance 98 Annex 15: Map N o.IBRD 33388R .......................................................................................... 100 REPUBLIC OF COLOMBIA JUSTICE SERVICES STRENGTHENING PROJECT PROJECT APPRAISAL DOCUMENT L A T I N AMERICA AND CARIBBEAN LCSPS Date: November 6,2009 Team Leader: David F. Varela Country Director: Gloria Grandolini Sectors: Law and Justice (50%) Sector Manager: Nicholas P. Manning General Public Administration (50%) Themes: Judicial and other dispute resolution mechanisms (P); Access to Law and Justice (S) Project ID: PO83904 Environmental screening category: C Lending Instrument: Adaptable Program Loan (ML) [XILoan [ ]Credit [ ]Grant [ 3 [ ] Other: Guarantee For Loans/Credits/Others(US$m.): 20 Total Bank financing (US$m.): 20 Proposed terms: Fixed Spread Loan (FSL), with a 10.5 year grace period and a 12.5 year RECONSTRUCTION AND DEVELOPMENT (IBRD) Total: 11.90 8.10 20 1 Republic o f Colombia - Ministry o f Finance and Public Credit (MHCP) Carrera 7 A #6-45 Bogota, Colombia Tel: 57-1-5629145 ResponsibleAgency: Judiciary (Rama Judicial - Consejo Superior de la Judicatura - Sala Adrninistrativa) Tel: 571-5629142,5658500 x4631/4633 Expected effectiveness date: January 1,2010 Expected closing date: December 3 1,2013 Does the Project depart from the CAS in content or other significant respects? [ ]Yes [XINO Ref: PAD A.3. Does the Project require any exceptions from Bank policies? Re$ PAD D. 7. [ ]Yes [XI N o Have these been approved by Bank management? [ ]Yes [XINO I s approval for any policy exception sought from the Board? [ ]Yes [ X I N O Does the Project include any critical risks rated "substantial" or "high"? Re$ PAD C.5. [XIYes [ IN0 Does the Project meet the Regional criteria for readiness for implementation? Ref: PAD D. 7 . D(1Yes [ IN0 I . Project development objective: Re$ PAD B.2. Technical Annex 3. The Project development objective is to strengthen the capacity o f the Judiciary and the Ministry o f Interior and Justice (MIJ) to deliver timely, efficient, effective and quality dispute resolution services to citizens. Project description Ref: PAD B.3. Technical Annex 4. Component 1 - Strengthening o f Judicial Case Management (US$ 11.51 million). Strengthening o f the managerial capacity o f the Judiciary to improve the performance o f civil, family and labor courts in the Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin. Component 2 - Development o f judicial human resources (US$1.73 million). Developing the Judiciary's human resources on the basis o f periodic performance evaluations and capacity building. Component 3 - Facilitatingaccess to justice services (US$2.67 million). Facilitating access to justice services by vulnerable groups, through development and dissemination o f reliable information, extension o f geographic coverage, and strengthening o f conciliation services. 11 Component 4 - Project coordination(US$l.l8 million). Strengthening o f the Judiciary's capabilities to carry out Project implementation and coordination. Contingencies - (US$2.91 million) - Price and physical contingencies were determined for the four years o f project implementation. Which safeguard policies are triggered, if any? Re$ PAD 0.6. Technical Annex I O . None o f the actions considered in this Project will trigger any environmental or social safeguard policies. The environmental screening category o f the Project i s C. Significant, non-standard conditions, if any. Re$ PAD C.6 NIA B o a r d presentation: N o conditions o f Board presentation L o a n Effectiveness: N o conditions o f loan effectiveness (other than standard legal opinions) The proposed Project will not require any exceptions from Bank policies and will comply with all applicable Bank policies. ... 111 I. STRATEGIC CONTEXT AND RATIONALE 1. This document presents a proposed US$20 million Bank loan to the Republic o f Colombia to support the execution o f a justice services strengthening project (the Project) over the period o f 2010-2013. The Project will constitute the first phase o f a five year Justice Services Strengthening Program aimed at bringing effective justice services closer to the citizens. The Project will strengthen the capacity o f the Judiciary and the Ministry o f Interior and Justice (MIJ) t o deliver timely, efficient, effective and quality dispute resolution services to citizens. The Project will also improve the preparedness o f the c i v i l and labor courts to serve the increased demand for justice services that the economic downturn is expected t o generate, as happened during the latest sharp slowdown o f the Colombian economy (1999-2001) thereby generating a more conducive dispute resolution system for economic players under overall conditions o f financial distress. A. Country and sector issues 2. Achievements o f the Uribe Administration. When the first administration o f President Alvaro Uribe assumed office in 2002 citizen security constituted the country's single most important challenge. In addition, a sharp contraction in 1999 led to economic stagnation and undid part o f the progress made in reducing poverty. Since then, Colombia has rebounded strongly both on the security and economic fronts. While security challenges s t i l l remain, nearly 50,000 illegal troops have been demobilized and reincorporated into society by late 2008 and the economy has likewise grown by 5.3% between 2002 and 2008. 3. The justice sector and governance in Colombia. The Colombian Government believes that effective management o f economic crises and ensuring security for its citizens alone do not provide sufficient grounds for achieving firm conditions o f lasting peace and economic stability. One o f Colombia's main challenges at this juncture i s to consolidate recent gains and to overcome the institutional weaknesses o f the justice sector that facilitated the growth in illegal activities in the past. The Vision Colombia Bicentennial 2019 Document, the National Development Plan 2006-2010, and the Judiciary Strategic Plan intend t o consolidate a model o f democratic governance, around the goal o f bringing "effective justice services closer to citizens". Actions are aimed at strengthening the justice sector's ability to serve as a guardian o f the Rule o f Law, capable o f securing the constitutional right o f universal access to prompt justice, and o f providing the peaceful settlement o f major conflicts. 4. The 1991 Constitution and the justice sector. The 1991 Constitution effected far- reaching changes to raise the justice sector's performance and quality. N e w rights and more effective methods for accessing them were established. Provisions were made t o accelerate a transition to an accusatorial system o f criminal justice, as well as t o establish out-of-court conflict resolution mechanisms. A Constitutional Court (CC) was established t o protect basic 1. Colombia's justice sector comprises several institutions across the Executive and Judicial Branches, and even independent and non-governmental institutions that provide various dispute settlement services to citizens, the most important being the Judiciary (Rama Judiciae's "court system" (i.e. all the civil, family, labor, administrative, criminal, disciplinary and juvenile courts) and the Government's Ministry o f Interior and Justice (MIJ) (See Annex 1, Figure A.l.l). 2. Plan Nacional de Desarrollo 2006 - 2010 "Estado Comunitario: desarrollo para todos". Capitulo 6: Un mejor Estado a1 servicio de 10s ciudadanos. httw//www.dng.gov.co/~aginas detalle.as11x?id~=906 . Colombia Segundo Centenario: 2019. Capitulo 6: Un estado eficiente a1 servicio de 10s ciudadanos. Editorial Planeta. 1 rights as well as a new Superior Council o f the Judicature (CSJ) with administration responsibilities for the Judiciary's national structure. Figure 1. Results o f the criminal justice reforms (Number o f crimes per 100,000 population) 2001 2 0 02 20 03 200 4 2005 Year -- Homicides Crimes against Persons Source: National Planning Department-DNP. Table 1. Results o f criminal justice reform (cases initiated by type o f crime) TvDe o f Crime 2003 2004 2005 2006 Homicide 3.787 5.627 8.559 9.928 Other crimes against individuals (other than sexual assault 19.146 65.874 49.685 62.097 or domestic violence) Crimes against property 42.678 147.561 129.694 70.739 Sexual assault or domestic violence 4.256 13.297 11.218 6.895 Criminal Negligence 11.801 34.978 26.323 14.16 Other Crimes or Offenses 18.286 31.151 57.145 100.338 Total 99.954 298.488 282.624 264.158 Total homicides in the countrv Source: AttomeyGeneral's Office-FGN. 5. With donor assistance, ambitious sector reform initiatives have been launched throughout this decade to address widespread demand for strengthening governance and reversing the recurrent cycles o f c i v i l strife. To date, most reform efforts have targeted the criminal justice side, and the results have been generally praised in terms o f improved court and case management. Moreover, results in terms o f reduced crime rates and increased number o f prosecutions have been documented (See Figure I and Table 1) demonstrating the Judiciary's ability to implement complex reform programs. However, these reform efforts have yet to expand to the non-criminal justice sector. A s a consequence, the Judiciary has requested Bank assistance t o scale-up the results o f the Bank`s first project for the Judiciary (see B o x 1) focusing on the upgrading and streamlining internal processes o f civil, family and labor courts, and enhancing access to vulnerable groups to these courts. Accordingly, the proposed Proiect will only focus o n the non-criminal courts. 2 Box 1. T h e first Bank project in the Colombian Justice Sector Jnder the Judicial Conflict Resolution Improvement Learning and Innovation Loan (LIL) (Loan No. 7081- ) which closed on June 30, 2006, the Judiciary undertook to pilot a comprehensive approach to non- riminal court operations through an integrated management model (Modelo de Gestidn Justicia Xl).The iea was to change organizational setups, work processes, and personnel capacities in about 80 civil circuit ourts in Barranquilla, Bogota, Bucaramanga, Cali and Medellin (with a few labor courts added ubsequently). This pilot initially moved slowly but in the end showed useful results, in particular gains in vera11 efficiency that can be credited to the management model, bolstered by teamwork incentives. The articipating courts increased their partial clearance rate or PCR (Le. the standard measure for court erformance in terms o f caseload management) from a average o f 60 percent to more than 110 percent o f >tal cases (see Box Figure 1) and their backlog (Le. accumulated case inventory) reduced from more than 0,000 cases to less than 10,000 (see Box Figure 2). Independent evaluations also found improvements in elay reduction and user satisfaction ratings. Box Figure 1. Performance o f court participating in the LIL Clearance Rate 1997 2005 - 220% 200% 140% 2 120% 100% 80% 60% 40% 1997 1998 1999 2000 2001 2002 2003 2004 2005 Years -- X BARRANQUILL4 - -* - . - BOGOTA --+--BUCARAMANGA C +L -- AI - 0- MEDELLIN Box Figure 2. Backlog evolution o f courts participating in the LIL 1 m 1 m lMWD I I 1997 1998 1999 2000 ZOO? 2002 2003 2004 I Year I ource: CSJ. Development and Statistical Analysis Unit. B. RationaIe for Bank involvement 6. The Bank's Country Partnership Strategy (2008-2011). The 2008 World Bank Group Country Partnership Strategy (CPS) notes that while Colombia has changed for the better in recent years, it still faces the challenges posed by activities o f illegal armed groups. The justice 'Report No. 42847 discussed by the Executive Directors on April 8,2008. 3 sector's main challenge i s to make a contribution to democratic governance and the rule o f l a w as proposed in the National Development Plan. 7. In particular, under the "Peace Pillar" o f the CPS the Bank's objective i s to help the Government strengthen the foundations for national reconciliation and lasting peace. O n the justice sector side, the Bank will support this pillar through the proposed Project by helping t o remove real or perceived barriers to access to the court system. T o this end, the Project-will support improved court performance, and enhanced access t o justice services. 8. Under the "State at the Service o f i t s Citizens: Efficient and Effective Government" pillar, the Bank will support the achievement o f the Government's goals in social and economic development. Institutional reforms are expected t o improve governance and public sector management for improved service delivery and economic policy making. Specifically, for the justice sector the Bank will continue supporting the authorities' efforts to improve services through the proposed Project by scaling-up the management model developed under the Learning and Innovation Loan (LIL) to achieve improved quality and efficiency in civil, family and labor courts, supporting geographical decentralization o f court facilities, and strengthening alternative dispute resolution (ADR) mechanisms. 9. PHRD Grant. Encouraged by the results o f the LIL, the authorities requested a Japan Policy and Human Resources Development (PHRD) Grant to fund the preparation o f the proposed Project. This grant financed: (a) an analysis o f key justice sector issues, geared particularly to: (i) remove obstacles to the implementation o f the Judiciary's Strategic Plan in the i) civil, family, labor and administrative courts; and ( iformulate proposals o n ADR, and inter- institutional coordination; (b) the design o f participatory and consultative methodologies and communications strategies; and (c) the development o f reform proposals to address unmet service needs. 10. O n the basis o f the lessons learned from the LIL as well as the studies financed by the PHRD Grant, the Government, the Judiciary and the Bank compiled a substantial knowledge base to implement an integrated solution for the non-criminal courts. Within the framework provided by the Vision Colombia Bicentennial 20 19 Document, the National Development Plan, and the Judiciary Strategic Plan, the Project will help the Judiciary to strengthen its capacity t o deliver efficient, timely and transparent services in selected courts, and to facilitate citizen access t o such services by: (i) scaling up an effective management model for producing more adequate outputs; (ii) generating reliable and usable data on the sector's performance; and (iii) reducing barriers t o greater public access to its services. The main thrust o f the Project will be o n raising the productivity o f civil, family and labor courts in six major cities thereby reducing congestion, long delays, and large backlogs. 11. Doing Business - Worldwide and Subnational Report. The Enforcing Contracts indicator o f the Doing Business Reports measures the number o f procedures, time and costs involved in resolving a payment dispute between two private parties in court. At present, o n this indicator Colombia ranks 14gth in the world and 25th in the Latin America and the Caribbean Region (LCR). I t takes 1,346 days (or 3.7 years) from the moment a case over a disputed amount equivalent to 200 percent o f Colombia's gross national income per capita is filed in court until the debtor makes a payment. This is almost double the L C R average o f 710 days, which is also high by international standards. The cost - at 52.6 percent o f income per capita - is also above the L C R average o f 31 percent. Total number o f procedures i s 34, slightly less than the L C R 4 average o f 39. The subnational reports finds wide dispersion in the performance o f Colombia's 13 major cities, with the highest delays and costs concentrated in Bogota, Barranquilla, Cartagena and Medellin (see Figures 2 and 3). Figure 2. Subnational Doing Business - Figure 3. Subnational Doing Business - Time to enforce a contract Cost to enforce a contract I I I I 12. The reports note that achieving short-term gains in the Enforcing Contracts indicator i s difficult as it usually takes time for any reform to make a tangible difference, given that some interventions require legislative changes (e.g., amendments to the C i v i l Procedure Code) or new institutional arrangements (e.g., setting up o f new commercial courts or conciliation centers). However, the report acknowledges that reforms are already underway to improve t h i s indicator in the near future (see B o x 2). Box 2. How to improve the Doing Business Enforcing Contracts Indicator in Colombia Consolidate the use o f the LIL management model. and extend i t to municipal courts: The introduction o f case management systems tested under the LIL in the 5 largest Colombian cities i s promising. Should the system be scaled up, it w i l l lead to a reduction in the time to resolve a case. Expanding the use o f the LIL management systems to municipal courts could also help reduce time to resolve common commercial disputes. Consolidate performance measurement for judges: T h i s would allow for comparisons among judges, for instance, on number o f cases adjudicated. It should lead to less time to resolve a case, other things being equal. Performance measurement for judges i s already happening but h s to be improved. a Screening and disposing o f cases that are pending due to lack o f action among parties: T h e backlog in the Colombian judicial system i s related to the high number o f cases that cannot be concluded due to a lack o f action by the parties. Screening the number o f cases pending that can be archived because o f such inaction may reduce the time for other cases. Source: Doing Business - Reform Memorandum, December 2009 13. Value Added o f the Proposed Project. The Project will target only non-criminal courts (civil, family and labor). In addition to scaling-up the LIL management model, it will also build o n the positive results o f the reforms in the criminal courts (in terms o f timeliness and effectiveness) that have received other donors' support in recent years (see Annex 2). I t will 5 serve the most immediate needs o f the courts in the country's six largest cities (Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin cities that head the most congested judicial districts) to implement an integrated solution that can be replicated in other cities in subsequent phases. Table 2. Caseload distribution per Judicial District (2008) Judicial I n i t i a l caseload New Total Clearance rate F i n a l Inventory Judgments District Active Inactive Cases caseload Par.tial Total Active Inactive Antioqiiia 20 412 7 817 22 644 18 919 50 873 84% 37% 23 972 7 877 Arauca 3 099 2 295 3 412 2 558 8 806 75% 29% 3 895 2 353 San Andres 1569 1 044 1435 1041 4 048 73% 26% 2 014 993 Armenia 16 512 28 814 13 255 11 534 58 581 87% 20% 18 669 28 365 Cucuta 23 286 31 345 15 199 14 467 69 830 95% 21% 24 350 31 012 Cundinamarca 36 419 48 469 20 935 18 513 105 823 88% 17% 38 766 48 532 Florencia 5 576 7 185 5 365 4 399 18 126 82% 24% 6 028 7 698 Ibague 43 035 80 479 29 207 26 464 152 721 91% 17% 45 140 81 082 S Monteria 17 621 54 216 21 992 20 427 93 829 93% 22% 21 864 51 536 Neiva 27 679 55 350 21 415 18 068 104 444 84% 17% 30 970 55 360 Pamplona 1197 724 2 046 1 494 3 967 73% 38% 1837 635 Pasto 26 797 63 190 21 395 17 175 111 382 80% 15% 30 497 63 650 Pereira 17 777 22 724 20 983 16 761 61 484 80% 27% 21 828 22 878 Popayan 27.513 20 811 11 963 11 207 60 287 94% 19% 28 026 21 049 Quid 6 757 1309 3 227 2 781 11 293 86% 25% 7.269 1.243 Riohacha 4 518 7 363 5 183 3 995 17 064 77% 23% 5.808 7.240 San Gil 5 120 12 012 4 813 4 324 21 945 90% 20% 5.736 11 882 Santa Marta 17.583 34 871 13 268 10 740 65 722 81% 16% 19 690 35 288 Santa Rosa 13 060 41.208 7 529 6 586 61 797 87% 11% 13 853 41 355 Sincelejo 9 409 18.894 9 327 7 345 37 630 79% 20% 11 083 19 196 Tunja 17 645 47.200 11 550 10 623 76.395 92% 14% 18 600 47.160 Valledupar 22 976 19 153 13 967 11.173 56 096 80% 20% 25 357 19 557 Villavicencio 24 820 28 803 16 335 13 795 69.958 84% 20% 27 218 28 921 Yopal 12.063 8.685 1.529 1.230 22.277 80% 6% 12.419 8.627 Total 1.101.583 1.539.538 729.247 635.315 3.370.368 87% 19% 1.189.765 1.543.882 5 project cities 624,608 725,095 366,,158 321,607 1,715,861 663,025 730,292 5 project cities as Dercentage o f iota1 - 57% 47% 50% 51% 51% 56% 47% Source: CSJ - SIERJU (Statistical System o f the Judiciary). 14. More than 60 percent o f the proposed Loan proceeds will be alIocated t o investments in the courts operating in the six major cities. The studies financed by the PHRD Grant 6 recommended to target Project investments to these metropolitan areas because the 750 civil, family and labor courts operating there currently employ more than 3,300 court officials, handle more than 3.1 m i l l i o n cases, and serve a population close t o 19 million. 15. For more than ten years, the Bank has promoted a close policy dialogue in a politically sensitive and complex area like justice sector reform. The proposed Project has also been prepared in close coordination with the Colombian national investment system led by the D N P and the Presidential Agency o f Social Action and International Cooperation (Accidn Social) in cooperation with the Judiciary and MIJ. The Bank's international experience on similar projects will help sector authorities to execute the pending reform agenda, and provide the basis for a sustained change management process. C. H i g h e r level objectives o f the Project 16. This operation will contribute to the 2008 CPS objectives in several respects. It will contribute to improving overall governance, and strengthening Colombia's foundations for peace through more effective dispute resolution by helping t o build a more accountable and efficient Judiciary that provides services accessible t o all Colombians. Improving the sector's performance in the six largest cities is essential to develop a critical mass o f efficient courts serving its citizens. A more reliable and accessible court system should also enhance the predictability in the application o f laws and regulations which, in turn, will be conducive for stimulating private investment. The Project will also serve to advance law-based policies and practices for the resolution o f non-criminal cases with economic impact (civil-commercial cases and labor disputes). 17. The Project will produce an increase in court clearance rates and a reduction in case backlogs for swifter enforcement o f contracts, thus enhancing the investment climate for the private sector in Colombia. Backlog has proven the most difficult aspect to tackle throughout the system; following the increases o f 1998-2000 o f about 200,000 cases a year, a plateau was reached between 2001 and 2004, resuming an upward trend since 2005 to the current backlog o f about 3 million cases (see Figure 4). The plateau and the subsequent increase are closely related t o the widespread recourse to exercise legal rights that was facilitated by the 1991 Constitution, in particular tutelas and class actions. This increase has offset the efficiency gains o f previous decongestion programs. The proposed Project will address this issue through specific modules that allow the court system to deal with similar cases under a single legal process handled by the same judge or group o f judges thereby avoiding dispersion throughout the system o f those cases that can lead t o contradictory decisions. 7 Figure 4. Caseload and Backlog (Incoming and outgoing cases) No. of cases 3.000.000 1 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 - -- t, 8.81 2.597.692.699.87 2.85 1.26 1 519.691 384.48 1.138.40 1.388.03 1 406 91 1.322 821.374.4d 1.735 OF) +Judgmcnt~1.102.421.352.54 1.470.081.355.91 1.169.821.412.361.368.971.243.9~1.272.31 1.583.6? Source: Development and Statistical Analysis Unit o f the Judiciary (UDAE), DNP 1 1. PROJECT DESCRIPTION A. Lending instrument 18. The proposed project has been structured as an Adaptable Program Loan (APL). I t will constitute the first phase o f a five year Justice Services Strengthening Program agreed-between the Government and the Judiciary, aimed at bringing effective justice services closer t o citizens. The Program will comprise two phases. The A P L approach will provide a framework t o support the broad-based medium-term sector investment program designed by the authorities to provide efficient and timely justice services in the country's major urban areas. The choice o f the A P L was based o n the need to generate a critical mass o f modern and effective courts in the country's six major cities, thereby creating a platform for coordinating and supporting the subsequent phase when the program will achieve a national coverage in selected courts. The A P L was also selected as the most suitable instrument t o help the Government and the Judiciary achieving higher levels o f effectiveness through progressive investments anchored o n the same management model. 19. The APL was likewise considered the most appropriate instrument to support in the medium-term (up to five years) the strengthening o f the participating agencies (CSJ and the MIJ). The incremental buildup o f institutional capacity, sorting out o f organizational problems and modernization o f operating procedures and tools comprise the logical priorities o f the first phase o f the APL. Moreover, the mechanism o f an APL subject to specific triggers will allow the sequencing investments and ensure integrated solutions are implemented in a definite geographical area. B. Program objectives and phases 20. The Bank will support the implementation o f the Justice Services Strengthening Program described in Document No. 3559 o f December 15,2008 approved by the National Council for 8 Economic and Social Policy (CONPES). Bank financing will be structured around a two-phase APL (non-consecutive and overlapping), with Phase I(the proposed Project) focused on the strengthening o f selected justices services in the courts o f the country's six major cities while setting the basis for wider national coverage, and Phase I1 designed to complete the expansion o f the program to labor courts throughout the country, and to all civil and family courts within the six major cities. During Phase I Bank support will also focus o n consolidating the L I L ' s major , achievement (the management model) and implementing the key recommendations o f the PHRD-financed studies (in terms o f performance monitoring and evaluation [M&E] and case inventory screening). 21. The second phase will be structured taking into account the experience o f the . implementation o f Phase I Triggers to advance towards Phase I1 o f the A P L will be linked to both CSJ's and the MIJ's readiness to scale-up their respective components (for instance, court management model/performance M&E system at the national level, and complete the key tools to facilitate access to justice services). Preparation o f Phase I1 i s likely to begin during the implementation o f Phase Iand implementation o f Phase I1 will begin as soon as triggers are met . and will not require the completion o f all activities included in Phase I Phase I1 will be developed through consultative and participatory processes similar to those undertaken for Phase I The activities to be financed in Phase I1will constitute a natural continuation o f those financed . in Phase I . Box No. 3 - Triggers to move from Phase Ito Phase I1 Management model implemented in 234 civil, family and labor courts in Bogota, Barranquilla Bucaramanga, Cali, Cartagena and Medellin. Performance M&E system implementedin the 234 courts that operate the management model. Case inventory screening completed in the 573 courts that will operate the management model. First national unmet basic justice services survey completed. Design of the special access module to facilitate decentralization completed. Technical quality norm for conciliationcenters approved. 70% of the proceeds of APL 1 disbursed C. Project development objective and key indicators 22. The Project development objective i s to strengthen the capacity o f the Judiciary and the MIJ to deliver timely, efficient, effective and quality dispute resolution services to citizens. Key performance indicators for tracking progress towards achieving these outcomes are listed in B o x 4 below and detailed in Annex 3. 23. The selection o f the civil, family, and labor courts o f the country's six major cities was based o n the geographical distribution o f justice services demand identified by the PHRD- financed studies. Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin concentrate more than 45 percent o f the country's population, 65 percent o f demand in the civil, family and 4 559.pdf http://www.dnp.gov.co/PortalWeb/Portals/O/archivos/documentos/Subdireccion/Conpes/3 9 labor courts, and show poor performance in terms o f contract enforcement under the "Subnational Doing Business 2008 Report". Box 4: Key Performance Indicators OUTCOME INDICATORS Backlog in the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin targeted by the project reduced by approximately 300,000 cases resolved or archived. Productivity in the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin targeted by the project increasedby an average o f 50 cases resolved per judge per year. Court users o f the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin report increased satisfaction levels (up to85 percent) in terms o f the quality, timeliness and effectiveness o f the services delivered. Court users o f the civil, family and labor courts in Barranquilla, Bogota, Bucaramanga, Cali, n Cartagena and Medellin report increased satisfaction (up to 80 percent) i terms o f accountability and transparency. 50 percent o f the Judiciary staff in the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin i s trained and evaluated in accordance with the policies and processes developed under the Project. Decentralized units in Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin provide services to 350,000 users. Certified conciliation centers provide services to 20,000 users. D. Project components 24. The Project will strengthen the Judiciary by scaling up the management model developed under the LIL (see Figure 5).5 The investments in information and communications technologies (ICT) systems under subcomponent 1.1 will help the Judiciary authorities to eliminate structural backlogs by relying o n regular, consistent, and reliable information as a key tool for improved planning and implementation capabilities, while enhancing governance by allowing citizens to exert social control under a two-way communications subcomponent (1.2). The estimated Project cost i s detailed in Annex 5. The Project will not finance any new physical infrastructure, only the refurbishment o f existing infrastructure (see Annex 8, pg 85). The only courts eligible for financing will be civil, family, and labor courts o f the ordinary jurisdiction. 25. The Project will comprise four components as follows: Component 1 - Strengthening o f Judicial Case Management (US$11.51 million) Objective: Strengthening o f the managerial capacity o f the Judiciary to improve the performance o f civil, family, and labor courts in Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin. 5. For a more detailed discussion o f the management model used by Colombian courts, how it was improved by the LIL and how it will be further improved under the Project, see Annex 4, pg.54. 10 Activities to be financed: Subcomponent 1.1. Improvement o the efficiency o justice services management (US$ f f 10.8 7 million) Design o f a management model for the selected courts aimed at reducing congestion and implementing oral procedures, based on the management model developed under the LIL for the circuit c i v i l courts (Justicia HI). Implementation o f the management model in the selected courts including the carrying out o f c i v i l works comprising remodeling and refurbishing o f office space t o allow the installation o f I C T equipment in existing court buildings. Implementation o f an M&E system for court performance focusing o n quality and productivity criteria, including the acquisition and installation o f the I C T infrastructure and the provision o f training. Carrying out o f the review o f the case inventory o f the selected courts, for the purposes o f screening said inventory, determining active and inactive backlogs, and reallocating inactive backlogs. Design and implementation o f automated procedures for delegation orders (despachos comisorios) aimed at expediting case processing in the c i v i l courts o f the city o f Bogota, through the carrying out o f c i v i l works for the remodeling and refurbishing o f office space required for the installation o f I C T equipment in existing court buildings. Subcomponent 1.2.Development o communication systems between citizens and the f Judiciary (US$0.61 million) Implementation o f the Judiciary's internal and external communications strategy to support the carrying out o f the management model. Establishment o f administrative mechanisms aimed at promoting accountability for judicial personnel and a greater role o f users in the improvement o f justice services. Component 2 - Development o f judicial human resources (US$1.73 million) Objective: To develop the Judiciary's human resources o n the basis o f periodic performance evaluations and capacity building. Activities to be financed: Subcomponent 2.1. Carrying out o training programsfor judicial staff (US$1.63 million) f Design o f a new administrative management model for CSJ's Judicial School (EJRLB), based on an evaluation o f its current model. Implementation o f the new administrative management model for EJRLB, through the development of: (i) virtual training methodologies and technical contents ( including the refurbishing o f the EJRLB's video-conference room); and (ii) new program o n applied a legal research for judges. 11 I 0 Design and implementation o f training programs to support the carrying out o f the management model developed under Component 1 aimed at streamlining oral-based arguments. Subcomponent 2.2. Improvement o performance evaluation mechanisms for judicial staff f (US$ 0.1 million) 0 Improvement o f performance evaluation mechanisms, including inter alia, the design and implementation o f standard performance evaluation mechanisms and parameters applicable judicial personnel. Component 3 - Facilitating access to justice services (US$2.67 million) Objective: To facilitate access to justice services by vulnerable groups, through the generation and dissemination o f reliable information, the extension o f geographic coverage and the strengthening o f conciliation services. Activities to b e financed: Subcomponent 3.1. For all justice services (US$0.52 million) Development and dissemination o f reliable information by strengthening the analytical tools to identify and analyze the supply and demand o f justice services, including inter alia: development o f the technological platform to update the justice services map; and carrying out o f a national access t o justice services survey to identify main barriers to access. Subcomponent 3.2. For formal justice services (US$1.86 million) Extension o f geographic coverage o f justice services, through the design and implementation o f decentralization strategies for the management model in the selected courts, including inter alia activities to facilitate: decentralization o f the provision o f selected justice services aimed at improving, inter alia, filinghervice o f process, submissions o f claims/counterclaims, written pleadings, in partnershipwith other State agencies; and carrying out o f civil works, including the carrying out o f office remodeling and refurbishment o f office space in existing buildings, and remodeling o f user information kiosks, required for the installation o f ICT equipment to allow the decentralization o f court . offices to provide accessible service entry points to citizens. Subcomponent 3.3 For alternative dispute resolution mechanisms (US$0.29 million) Strengthening o f conciliation services, through, inter alia: development o f a technical quality norm to measure the technical quality o f services provided by conciliation centers; and application o f the technical quality norm in selected conciliation centers. 12 13 Component 4 - Project coordination (US$ 1.18 million) Objective: To strengthen CSJ's capabilities to carry out Project implementation and coordination. Contingencies - (US$2.91 million) - Price and physical contingencies were determined for the four years o f project implementation. (See Annex 5) Activities to be financed: 0 Carrying out o f administrative, financial management, procurement and other operational activities required for project implementation by: (a) a Project Coordination Unit (PCU) in CSJ and (b) a Project manager in MIJ. Carrying out o f Project M&E activities. E. Lessons learned f r o m the LIL and reflected in the Project design Table 3. Lessons Learned from the LIL broad consensus-building about the proposed reforms, to development o f coordination mechanisms -for justice show expected benefits, and establish alliances with sector institutions. The Project will support capacity stakeholders. Stakeholders are growing more demanding building at all levels (institutions, stakeholders) and will of transparency and accountability from sector agencies. encourage public debate on justice policies (Subcomponent 1.2). An Advisory Group will promote broad participation and consultation throughout Project implementation within a framework that stresses institutional transparency and accountability. The reform process should involve the higher authorities During Project execution the Administrative Chamber ofthe Judicium. The leadership should ensure that the of CSJ will retain an oversight role while day-to-day most relevant unitshtaff participate, and that the impact implementation responsibilities will be delegated to the and outcome indicators are achieved. Reform initiatives PCU reporting to the Chamber. have to be absorbed by the organizational structure o f the Judiciary to develop in house expertise. Judicial management is critical to improve court Component 1.1 o f the Project will support the scaling up performance. The results of the LIL courts in terms of of Justicia XYI that made possible the performance clearance and congestion rates showed that change can improvements of the LIL courts to other civil, family happen and can be sustained. A management model andlaborcourts. made the difference; i t generated data essential to facilitate effective decision-making. To achieve long-term sustainabilitv, justice projects The Project will provide institutional strengthening and should foster institutional capabilities at the capacity-building under Subcomponent 1.1 (microhield macro/micro levels (Le. at CSJ policy-making level and a implementation in 5 large cities) and Component 2 court operations level). (macrohational level human resources policies). Pilot uroiects develop a reform constituency by The Project will scale up one of the main product of the achieving concrete results. Pilot projects can later be LIL pilot (the management model) through scaled up in other regions or courts. Subcomponent 1.1 that includes a robust M&E subcomponent and will generate a wider reform constituency beyond the staff and users of the civil circuit courts that participated in the LIL. Engagement in Project activities must be perceived as a The training activities envisaged under Subcomponent part o a professional development process to overcome 2.2 are designed to support the professional f a natural resistance to change. development of judicial staff in charge of implementing the scaled-up management model. 14 Lessons Learned Project design A management model requires common technical The national standards of the management model will be standards in order to achieve: (i) consistent policies and developed by the Judiciary under Subcomponent 1.1 on procedures; (ii) compatibility of information systems; the basis o f Justzcia XYI standards. and (iii) seamless transfer o f information among sector agencies. Consensus-based decision-making among working The management model to be scaled up under the groups o judges provides hirh returns. T he LIL f Project will engage the judges and administrative staff developed o f a new teamwork paradigm around Justicia o f the country's 5 largest cities to work together to solve XU, as opposed to the traditional model o f the insular common problems, and address the bottlenecks o f the judge and staff in a single courtroom. Judges took a administrative aspects o f court proceedings. proactive leadership in court proceedings as courtroom and caseload managers (Juez director del proceso y del desoacho). Court operation must be subject to public scrutiny and The accountability and transparency features o f the LIL evaluation requirements. will be retained in the Project through subcomponent 1.2 that strengthens the sector's communication capabilities, and subcomponent 2.2 that develops new performance evaluation methods for judges and judicial staff. To stabilize a court management model, a flexible The Project will gradually move into 5 high-priority strategy o continuous improvement must promote best f cities with a variety o f regional settings to ensure that an practices and allow periodic assessments not only o f integrated solution i s implemented in a single productshervices but also o f processes. Flexible geographic area before moving into new areas. planning facilitates quick adaptation to unforeseen circumstances and reaction to the feedback o f users and other sector operators. M&E is critical because o the broad implications o f f Under Subcomponent 1.1, the Project will develop a justice sector reform and the need to ensure the court robust M&E system. Engagement o f key stakeholders system effectiveness and sustainability as well as will be promoted by Subcomponent 1.2. The Advisory institutional transparency and accountability. Group with representatives o f private sectorkivil society organizations will review M&E findings and provide feedback to the participating agencies. The colleaial structure o judicial administration bodies f Project preparation benefited from the continuous makes decision-making more complex. Flexible involvement o f the Administrative Chamber o f CSJ and arrangements for Project implementation are essential as the long-term vision o f the Judiciary Strategic Plan. they cannot be subject to the same administrative structure o f the regular businesses o f the institution. PCUs need continuity and credibility. The definition o f The PCU will ensure compliance with the fiduciary the role, profile and skills o f PCU staff, and i t s level o f aspects at the central level, and provide technical autonomy are critical. The PCU team should comprise experts to support the Regional Councils during experts with strong technical qualifications hired under implementation in the country's 5 largest cities. fixed-term contracts. F. Alternatives considered and reasons for rejection 26. The Government had originally requested support for this follow-up operation through a Specific Investment Loan (SIL) to scale up the management model developed under the LIL to a critical mass o f the court system in the six largest cities, leverage the performance M&E o f judicial staff, and facilitate access to justice services by vulnerable groups. A S I L would have also been consistent with the strong investment focus o f the operation o n I C T systems and the flexibility the instrument provides t o incorporate supporting technical assistance (TA) elements. 15 27. Past experience with S I L s have produced successful operations where selected entry points can lead t o specific solutions for long-standing problems and lay the bases for sustainable institutional development over the long term, as in the case o f integrated financial management systems. However, past experience shows that justice sector projects are subject to higher implementation challenges due o f issues related to: (a) sector and project complexities; (b) working with a separate branch o f Government; (c) M&E indicators; (d) infrastructure financing needs; and (e) expertise required for preparation and supervision. 28. Although a Technical Assistance Loan (TAL) would have helped to build institutional capacity, it would not have allowed sufficient investments to support a critical mass o f modem courts operating with cutting-edge technology. A longer A P L (three phases up to 10 years) was also considered but the Government-Judiciary were not in a position t o commit t o a larger series o f operations around a long-term program that would be implemented under subsequent administrations. The authorities preferred a medium-term horizon that would allow them to rapidly consolidate achievements within the term o f the current judicial authorities. 111. IMPLEMENTATION A. Partnership arrangements 29. During Project preparation. During Project preparation a multi-disciplinary Judiciary- MIJ-Bank team carried out consultations with representatives o f beneficiaries and stakeholders, through a number o f structured and semi-structured interviews and workshops. Benefiting from the LIL experience, a public consultation process was not needed, and more focused institutional, social and communications assessments were deemed sufficient. Given the broad demand for new approaches, debate was encouraged among high-level Government-Judiciary officials t o agree o n a basic Project framework during two major workshops (July 2007 and January 2008) and the preparation o f a background policy paper (September 2008). With PHRD financing a pilot survey o f unmet basic justice needs was conducted (February and March 2008). 30. The consultation and participation exercises concluded that the Project should support institutional reforms aimed at improving the quality o f justice services available to average citizens. The traditional focus on supply policies ("more money equals better services") i s clearly insufficient. A new "demand" approach is required to move into a more nuanced vision about the interaction between what society demands and what the State institutions can deliver in the area o f dispute resolution services. The studies financed by the PHRD identified various levels o f institutional capacities, critical bottlenecks in judicial workfiows, users' priorities and preferences, and options for cost-effective responses. 3 1. Project preparation also.benefited from strong donor coordination. The Bank team was in regular contact with representatives o f the Inter-American Development Bank (IADB) and bilateral donors such as the United States Agency for International Development (USAID), the European Union (EU), and Japan. The results o f major studies financed by the LIL and the PHRD Grant were shared with these donors. 32. F o r Project implementation. The Project will involve agencies o f the Executive and Judicial Branches in a concerted approach to overcome critical bottlenecks o f the justice sector. I t will focus on areas o f immediate benefit for justice services' users and will attempt t o produce and disseminate a new vision for the sector in a way that seeks t o engage and empower the main actors. 16 33. To facilitate effective participation in Project implementation, M I J (under Subcomponent 3.1) w i l l promote stakeholder involvement in periodic information dissemination around the justice services supply map and the periodic unmet basic justice needs follow-up surveys. Under component 1.2 the Judiciary will disseminate up-to-date information, while civil society organizations (CSOs) provide feedback. B. Institutionaland implementationarrangements. 34. Institutional arrangements. The Project will be carried out by the CSJ and the MIJ. Components 1, 2 and Subcomponent 3.2 w i l l be the sole responsibility o f the CSJ, while responsibility for Subcomponents 3.1 and 3.3 will be MIJ's. The CSJ w i l l be responsible for overall Project coordination, and M&E (Component 4). 35. Implementation arrangements. More specifically Project implementation responsibilities will be vested in: (a) the Administrative Chamber o f the CSJ who will review and approve the project's key operational instruments: Operational Manual (OM), Annual Operating Plans (AOPs) and progress reports. Field implementation o f Component 1 and Subcomponent 3.2 will be the responsibility o f each Regional Office (Consejo Seccional) under CSJ supervision; and (b) M I J will lead the implementation o f Subcomponents 3.1 and 3.3 with the assistance o f a Project manager that w i l l coordinate with MIJ's International Cooperation Affairs Bureau (OACI) and Financial Management Group (GGF) all internal administrative matters, including the monitoring and evaluation o f MIJ's subcomponents. The Project manager w i l l also provide to the PCU all inputs related to Subcomponents 3.1 and 3.3 for the AOPs, the Procurement Plans and the progress reports. 36. CSJ and M I J will establish and maintain a Working Group with membership, structure, functions and responsibilities satisfactory to the Bank. This Committee will comprise representatives o f the CSJ, the MIJ, and DNP and w i l l be responsible for: (i)providing overall guidance and support to ensure timely Project implementation; and (ii) reviewing final and intermediate outcome indicators. DNP's participation in the Group will help harmonizing Project implementation with justice sector reform activities pursued by other agencies o f the Colombian Government, within the framework o f the National Development Plan. 37. The M I J w i l l appoint a Project manager, with experience, qualifications and t e r n s o f reference (TORS) satisfactory to the Bank, for the purposes o f Subcomponents C. 1 and C.3 o f the Project, with h c t i o n s and responsibilities detailed in the Operational Manual which w i l l include, inter alia: (i)liaising with the PCU on all matters required for the effective implementation o f the Project, including reports and other documentation necessary to conduct Project reviews and handling o f financial management and procurement aspects in connection with those Subcomponents; (ii) coordinating with M I J technical units; and (iii) providing timely support to OACI and GGF to effectively coordinate all o f MIJ's internal administrative matters 6 The Operational Manualwill also provide an Advisory Group with appropriate membership, structure, hnctions and responsibilities. The committee will comprise representatives of the private sector, law schools, civil society and academia. The CVs of the Advisory Group members will be reviewed by the Bank, and their selection by CSJ and MIJ will follow transparent and competitive procedures. The Advisory Group will: (a) review Project M&E activities; and (b) provide feedback to the PCU on the progress achieved in Project implementation. However, because the Committee will not have formal responsibilities for Project execution it will not be included as part of the Project's implementationarrangements. 17 related to said Subcomponents, including all Project related financial management matters under the responsibility o f GGF. 38. An analysis o f CSJ's implementation capacity determined the need for a P C U fully integrated within CSJ's structure, mainly because: (a) the Judiciary i s a separate Branch o f Government with limited experience as executing agency o f projects financed by multilaterals; (b) the Project also involves the M I J as co-executing agency that will hire a Project manager to coordinate with the PCU for the implementation o f Subcomponents 3.1 and 3.2.; and (c) the P C U will be shared with the IADB project (see Annex 2). 39. To establish the PCU, the requirements o f the Memorandum o f Understanding (MOU) between the Government and the Bank dated August 21, 2007 were fulfilled through the .issuance o f CSJ's Acuerdo No. PSAAO9-6286 o f October 13, 2009 on the basis o f a detailed cost-benefit analysis prepared by CSJ and reviewed by the Bank: (a) CSJ requested and obtained approval o f MHCP, D N P and the Bank for a proposal that: (i) justified the need o f the PCU; (ii) determined the structure and membership o f the PCU, within CSJ; and (iii) proposed a institutionalization strategy; (b) the P C U consultants will be selected in accordance with competitive procedures under the Bank's applicable rules and will be financed by the Project in the amounts and for the periods indicated in the proposal; (c) the TORS o f P C U members established high professional experience and qualification requirements for the efficient administration, monitoring and evaluation o f the Projects, and were.reviewed and approved by the Bank. Prior to the end o f Phase 1, the CSJ and M I J will conduct an evaluation o f the performance o f the P C U and MIJ's project manager, and will prepare a proposal for the gradual phasing-out o f the PCUProject Manager, for discussion with D N P and the Bank as part o f the negotiations o f Phase 2. C. Monitoring and evaluation o f outcomeshesults 40. Building on the LIL's M&E. The bases for this Project's M&E arrangements were set out under previous Government-Judiciary-Bank collaboration. The LIL provided for output and impact indicators to gauge progress towards meeting i t s objectives. Specific indicators were agreed upon as part o f a participatory process -- mainly reductions in both case backlogs and the number o f cases individual judges disposed o f annually. Two major independent evaluations were conducted, covering the operational performance o f the participating courts, as well as court users' perceptions. The LIL also introduced a reliable system for assessing court performance (the M&E modules o f the Justicia XYI management model). 41. M&E actions. The Project will require continuous M&E to measure the key performance output and outcome indicators proposed in Annex 2. The unmet basic justice needs survey will be carried out to analyze key social variables and trends. The information will be reflected in the justice services supply map. Additional surveys in the Project cities will be conducted to assist in measuring performance toward improving service delivery and broadening access to Judiciary facilities in the Project cities. PHRD Grant-financed studies provided the baseline data. 42. The CSJ, the MIJ, and the Bank will collaborate during the course o f Project execution to assess progress, identify issues and propose measures to ensure that the Project objectives remain relevant while risks are minimized or contained. The M&E activities o f this Project will focus on: (a) results and outcomes vis-a-vis the objectives o f the Judiciary Strategic Plan and the investments in the Project cities included in the AOPs; (b) the extent o f internal processes 18 improvements and their impact on service delivery; and (c) the level o f user satisfaction with the 7 justice sector delivery improvements. 43. M&E organizational arrangements. The Administrative Chamber o f CSJ will review and approve AOPs detailing investments in Project cities. To promote Project integration and learning across CSJ-MIJ units, annual workshops with staff o f the Project cities will be held to review progress achieved, agree on possible adjustments, and review proposals for the following year. A Project launching workshop will take place shortly after effectiveness with participation o f CSJ k d MIJ staff, and staff o f the Project cities. 44. A combination o f ex ante and ex post monitoring will be used. M&E results will feed back into the CSJ-MIJ's decision-making to improve performance, and will serve as the basis for discussions o f the Working Group and the Advisory Group to receive feedback on outcome periodic reports from the CSJ-MIJ; (ii) indicators. The primary sources o f Project data will be: (i) semi-annual Project progress reports and financial statements; and ( i )i ispecially commissioned surveys. Periodic reporting by the CSJ will be accessible, mostly online, by the general public. D. Sustainability 45. The Project's prospects for sustainability are high. The prominence given in the National Development Plan and the CPS to the issues which the Project will address raises the chances for the sustainability o f Project-financed investments. The Government and the Judiciary's high level `of commitment to maintain a steady, reliable level o f policy-making and managerial consistency, addressing the weak areas identified by the LIL and the PHRD Grant, add further weight to sustainability chances. 46. Financial sustainability is expected as Project costs will be compensated by improved managerial capacity in the CSJ and the MIJ, generating fiscal savings and efficiency gains, including higher effectiveness and transparency in the management o f the justice sector information systems. Institutional sustainability will be achieved through the coordination mechanism provided by the Working and Advisory Groups that will avoid any fragmentatiodduplication o f efforts among justice sector agencies. Technical sustainability will be enhanced through the capacity-building provided under Component 2. Social sustainability will be promoted through: (a) a highly participatory approach at all Project stages, including M&E instruments under Subcomponent 1.1; (b) consensus-building under subcomponent 1.2.b; and (c) information and public education under subcomponent 1.2.a to reduce resistance to change. 7. As part o f Project M&E, the Task Team will keep working with the Doing Business team in charge o f Colombia (for the Worldwide and sub-national reports) to track developments on the contract enforcement indicator. 19 E. Critical risks and possible controversial aspects Table 4. Risk Matrix From Outputs to PDO Disruption or paralysis o f Project Focusing design on high priority issues o f the Judiciary S implementation due to political Strategic Plan that do not require constitutional or legal debates around constitutional or legal reforms but deal only with lower-level reforms, or wavering support due to manageriayadministrative aspects. Project-financed activities conflicts between Government and can continue irrespective o f the governance reforms or judicial authorities. authorities turnover. Sensitivitv o f the justice sector reform Working Group w i l l provide the venue for consensus building. S process may generate widespread The Bank w i l l maintain a careful balance in i t s relations with discussion in the media and strain the major actors and follow-up closely any development in the relations between the Judiciary and the sector. Government. Internal vested interests may resist Strong support o f the highest authorities o f the Govemment- S reforms, in particular staff o f justice Judiciary and widespread ownership among judicial staff. sector agencies, and unions. Resistance from vested interests from Support from the Bank and donors, and regular participation M grouus outside sector agencies (e. g. of/consultation with non-government stakeholders under lawyers' associations) may prevent or subcomponent 1.2 w i l l provide leverage for reform-oriented reverse progress in creating a client- groups. oriented Judiciary. Widesuread frustration if n o effective Two subcomponents (1.1 and 3.2) are designed to provide M champions take the lead o f the reform effective responses in the short-term. Leadership o f key sector process or no results are achieved in agencies w i l l be present in the Working Group. the short and medium-terms. Particiuation o f the Bank and other Continuous Bank presence in the justice sector for more than L donors in the sector may generate ten years. Emphasis on donor coordination during Project resistances. preparation and supervision. Project reflects a sector vision agreed upon by leading sector agencies. Insufficient flexibility o f Project Project reflecting highest priorities identified in Vision L design to adapt to a changing Colombia Bicentennial 2019, National Development Plan, and environment. Judiciary Strategic Plan that provide long-term guidance for sector agencies. Periodic reviews w i l l allow continuous revisiting o f strategic priorities and adaptation to unexpected circumstances. Lack o f suuuort by public opinion. Communication systems subcomponent (1.2) designed to L generate a constituencv for change. From ComDonents to OutDuts Sector fragmentation and limited inter- Strong support o f the highest authorities Government- S institutional coordination, and delayed Judiciary. Working Group provides the venue for regular inter- decision-making processes may limit institutional coordination. External pressure from civil implementation capacity society/private sector/academic institutions through the Advisory Group and activities under subcomponent 1.2 Insufficient implementation capacity Support from the highest authorities o f the Government/ M to coordinate interrelated tasks and Judiciary, oversight o f the Working Group, and merit-based supervise Project components, hiring o f Project coordinator and PCU staff. Long-term complicated by turnover o f Project contracts provided for PCU staff (minimal 2 years) w i l l help staff might delay Project reducing this risk. 20 Risk Risk Mitigation Measure Residual Risk implementation Resistance by Proiect cities and/or Regional Offices engaged in each Project city; management M CSJ line units to share information model provides a single information platform with immediate and/or to move towards a single access to real-time data. Cutting-edge ICT technology and management model may delay Project capacity-building under Component 1.1 and strong external implementation oversight developed under Component 1.2 would also mitigate this risk Limited availabilitv o f reliable Strengthening o f judicial statistics under Subcomponent 1.1 to L statistics and weak quality control measure performance and provision o f ITC to ensure inter- mechanisms for measuring service connectivity and inter-operability among sector institutions for delivery improvements could exchange o f information will mitigate this risk. compromise the M&E system Limited fiscal space to finance Project CONPES approved this Project and instructed sector agencies L activities to open fiscal space. Limited caoacitv for procurement and Procurement/financial management risks assessed by Bank L financial management o f the PCU specialists and main recommendations agreed with the Judiciary (including hiring o f procurement/financial management consultants, training o f permanent staff, and standard TORS specifying relevant experience and qualifications). Overall Risk Rating S Note: (*) Risk ratings: H (High), S (Substantial), M (Moderate), L (Low or negligible). F. L o a n conditions and covenants 47. There are no conditions for Board presentation or loan effectiveness (other than the standard legal opinion for effectiveness). The following will be the most relevant covenants o f the Loan Agreement: 0 Operational Manual: The CSJ (for Components 1, 2 and 3.2) and the MIJ (for Subcomponents 3.1 and 3.3) will carry out the Project in accordance with a manual issued by the CSJ jointly with the MIJ, satisfactory to the Bank, containing detailed procedures and guidelines for the carrying out o f the Project, governing: (i) Project's the organizational structure, including the establishment o f the PCU; (ii) detailed TORs, procedures and timetable for the establishment and maintenance o f financial management, disbursement, accounting and auditing systems; ( i )procedures,ii requirements and standard contractual terms for the procurement o f works, goods, consultants' services and non-consultant services; (iv) procedures, requirements and standard contractual terms for the procurement o f civil works to: (A) exclude the construction o f new buildings or the expansion o f existing buildings; and (B) be carried out in accordance with safety and construction standards applicable to office remodeling and refurbishing o f existing buildings; (v) institutional responsibilities for the development and implementation o f any environmental measure required to mitigate any potential negative impact o f the civil works; (vi) institutional and administrative mechanisms established to ensure inter-institutional coordination, including the TORs and functions and responsibilities o f the institutions participating in the Project; (vii) 21 TORS and procedures for the M&E o f Project implementation, including the monitoring indicators; (viii) the functions and responsibilities o f MIJ's Project manager; and (ix) the identification o f the appropriate mechanisms necessary to facilitate inter-institutional coordination between the CSJ and the M I J through the interaction between the MIJ's Project manager and the PCU. 0 Annual Operating Plan: The CSJ (for Components 1, 2 and 3.2) and the M I J (for Subcomponents 3.1 and 3.3) will: (a) prepare in accordance with guidelines detailed in the Operational Manual, not later than October 31 in each year, starting in 2010, and furnish to the Bank a consolidated AOP satisfactory to the Bank, including a description o f Project activities and an implementation schedule for the upcoming year, a budget, a financial plan, a training program, and a plan for the proposed procurement o f works, goods, consultants' services and non-consultant services; (b) furnish to the Bank said plan for i t s review; and (c) based o n the views and comments provided by the Bank on said plan, take all measures required to ensure the completion and achievement o f said AOP. 0 Proiect Reports: The CSJ (for Components 1,2 and 3.2) and the M I J (for Subcomponents 3.1 and 3.3.) will monitor and evaluate the progress o f the Project and prepare Project Reports covering Project activities on the basis o f Monitoring Indicators set forth in the Operational Manual. Each Project report will cover a six-month period ending each June 30 and December 30, and will be furnished to the Bank not later than August 15 and February 15, starting in 2010. Each report will include: (i) detailed description o f a Project activities completed during the respective six-month period; (ii) detaileda progress report, including lessons learned during Project implementation; and (iii) an identification o f any issue that may delay Project implementation setting out the measures recommended to solve such issue. The Bank supervision missions will review these reports. Proiect Reviews: The CSJ (for Components 1, 2 and 3.2) and the M I J (for Subcomponents 3.1 and 3.3) will annually review with the Bank, not later than February 15 in each year, starting in 201 1, the project reports and carry out an annual project implementation review to: (i) evaluate progress achieved by the CSJ and the M I J in carrying out their respective activities; (ii) assess progress in the carrying out o f the training activities; (iii)assess the adequacy and timeliness o f the budgetary allocations provided by the Borrower to the CSJ and the M I J for the Project during the previous year, and review the proposed allocations for the upcoming year; (iv) exchange views o n progress achieved in the implementation o f the AOP during the previous year, and agree on the proposed activities for the upcoming year; (v) assess and adjust, if necessary, the monitoring indicators; and (vi) identify any current implementation issues and propose solutions to resolve such issues. The CSJ and the M I J will report the results o f the M&E activities to the Working Group and the Advisory Group. 0 Particular covenants: (a) The Borrower will (through the CSJ jointly with the MIJ) establish and maintain thereafter at all times until the completion o f the Project a Working Group with membership, structure, functions and responsibilities satisfactory to the Bank; (b) (i) The Borrower will (through CSJ) maintain at all times until the completion o f the Project, the PCU, within the CSJ, with functions and responsibilities satisfactory to the Bank; (ii) Borrower (through CSJ) will timely allocate part o f the The proceeds o f the Loan to maintain the PCU adequately staffed; (iii) The Borrower 22 (through MIJ) will appoint a project manager, with experience, qualifications and t e r m s o f reference satisfactory to the Bank, for purposes o f carrying out Subcomponents 3.1 and 3.3 o f the Project; (c) The Regional Councils shall have implementation responsibilities at the field level in the Project Cities, under the supervision o f CSJ, with respect t o the activities included in Subcomponents 1 and 3.2 o f the Project, with technical support o f the PCU. (d) The Borrower will make the proceeds o f the Loan available t o the CSJ and M I J through periodic budget transfers to facilitate the carrying out o f the Project. IV. APPRAISAL SUMMARY A. Economic and financial analyses 48. Improved delivery o f justice services will generate significant benefits for Colombian State institutions and society at large. Primarily, the management model will improve the quality, timeliness and reliability o f judicial decisions thereby facilitating an improved private sector decision-making environment. The Project i s also expected to have an impact in terms o f improving the effectiveness o f resource administration by the Judiciary by allowing the authorities to redeploy resources where justice demand is higher. Efficiency gains are expected from the strengthening o f human resources management, and anticipated improvements in the efficiency o f personnel allocation, since the organizational restructuring o f the Judiciary will provide the authorities with an opportunity to identify and eliminate duplication in functions and responsibilities. 49. No fiscal impact i s expected since salary and benefits increases o f judicial officials are already in place by agreement between the current Administration and the judicial staff union. In-kind incentives for judges and judicial officials will be provided through training and greater decision-making opportunities as a part o f Project activities. N o incremental personnel will be hired to staff the CSJ or the Project cities; existent professional staff will be reassigned as needed. B. Technical 50. The scarce data o n the "demand" side o f justice services had limited the ability o f judicial decision-makers to develop a comprehensive reform strategy. The traditional focus o n "supply" aspects was insufficient to address critical areas such as delays and productivity. Statistical tools employed in similar studies in other L C R countries were adapted in the PHRD- financed studies to track the performance o f the Colombian court system. The findings o f such studies in connection with increased efficiency, transparency and access have been reflected in Project design. 51. A possible tension between Component 1 (Effective management models for justice services delivery) and Component 3 (Enhancing access to justice services) was carefully analyzed during Project preparation: While Component 1 seeks t o reduce the existing backlog through the implementation o f a management model, Component 3 will facilitate access t o justice services potentially increasing the number o f users and cases. The issue o f transaction costs for users was also relevant for both components as may be both a cause for backlog (users stop paying court or lawyer fees) or a barrier to access (in particular, lawyer fees). 23 52. The design selected ensures that the courts involved in Component 1 benefit from Component 3 by: (i) reducing transaction costs for users through decentralization; and (ii) transferring to certified conciliation centers cases that can be settled out-of-court. W h i l e decentralization will benefit current users in terms o f reduced costs, conciliation services are designed to facilitate access and attract non-current users o f justice services. The studies financed by the PHRD Grant showed that pilot testing o f decentralization had not increased litigation, while conciliation can significantly reduce it. 53. The pilot justice services unmet basic needs survey identified the challenges posed by the information barriers affecting the most vulnerable groups in society that typically have little or no knowledge o f the legal remedies available for the recognition and enforcement o f their social and economic rights. The Project will address this issue through Component 1.2 dealing with public information and education campaigns, some specifically directed to current justice services' users and others to citizens that have not used such services but may need them in the future. 54. For decentralization o f court services, Project design carefully balanced geographic coverage with cost concerns. These processes will only take place in the metropolitan areas o f the six major cities to exploit economies o f scale, and diminish the risk o f escalating operating and maintenance costs. 55. The design o f the conciliationsubcomponent took into account that some women's groups have opposed the use o f conciliation in intra-family violence cases fearing that this ADR mechanism favors males over females. Such risk, however, exists also under the formal court system mechanisms and should be tackled through appropriate training o f mediators and court officials to eradicate gender stereotypes and develop sensitivity to gender issues. The social assessment conducted as part o f Project preparation did identify this issue and proposed a set o f actions to address gender disparities. In order to improve the quality o f conciliation services, the Project will help M I J (under Subcomponent 3.3) to develop a technical quality norm in conjunction with the National Institute o f Technical and Quality Standards (INCONTEC). N o court-annexed conciliation centers are envisaged under the Project. 56. There is limited expertise in the offices o f the Judiciary and the M I J in the Project cities. Therefore, the Project will have to finance the TA required to support performance improvements. Judicial staff o f the Project cities -in liaison with the P C U and consultants financed by the Project- will be involved in specific tasks (e.g. preparation o f TORs, analysis o f the findings and implementation o f the recommendations, and formulation o f adjustments to the AOPs) to ensure that the Project strengthens the service delivery capacity in each city. C. Fiduciary 57. The procurement and financial management assessments carried out during pre-appraisal indicated that the CSJ has sufficient capacity to manage Project financial matters and administer loan funds (Annexes 7 and 8). Financial Management (FM) and procurement responsibilities will be handled by the PCU, in coordination with the Executive Directorate o f Judicial Administration (DEAJ), CSJ's administrative arm and through MIJ's Project Manager with OACI/GGF (see Annexes 6 and 7). 58. Financial Management. A Financial Management Assessment (FMA) o f the CSJ was carried out in accordance with O P B P 10.02 and the Guidelines for the Assessment o f Financial 24 Management Arrangements in World Bank Financed Projects (see Annex 7). The assessment concluded that the CSJ has sufficient capacity to manage Project financial matters and administer loan funds. FM responsibilities will be carried out by the PCU in coordination with the DEAJ, and MIJ's Project Manager liaising with OACI-GGF. The main responsibilities will include Project budgeting, treasury, general accounting and keporting within the CSJ/MIJ functional lines. T o coordinate Project FM issues and t o support operative tasks, a FM specialist will be contracted under TORs satisfactory t o the Bank. The FM section o f the O M will include detailed FM responsibilities for each member o f the team. FM inherent risk for the country, the entity and the Project i s considered Moderate. The risk will be mitigated with the actions agreed under the country systems agreements, Bank Projectlfinancial management supervision and training from the Bank. Disbursements will be handled through the Ministry o f Finance and Public Credit, following established procedures. 59. Procurement. Procurement activities will be carried out through the PCU. The Procurement Assessment carried out in -May-July 2008 identified a P C U specialist experienced in Bank-funded procurement that will be supported by other staff with knowledge o f Bank procurement and consultant guidelines t o be involved in the review o f procurement actions under this Project. The key issues and risks concerning procurement for implementation o f the Project have been identified and include the lack o f an additional consultant in the field o f Bank-funded procurement for dealing with the day-to-day procurement implementation and document preparation. The corrective measure agreed is to hire a consultant o n a full-time basis for the life o f the Project with the required skills and experience in procurement o f works, goods, and services under Bank guidelines. The selection o f this consultant and hidher qualifications and TORs will require the Bank's no objection. D. Environment 60. The Project does not have any environmental impact. It is rated as Category C. The Project will not finance any new physical infrastructure, only the refurbishment o f existing infrastructure. E. Safeguard policies 61. None o f the activities included in this Project will trigger any o f the Bank's safeguard policies listed in Table 5 below. The environmental screening category o f the Project is C (no adverse environmental impact). 62. While the Project does not have any negative social impact, it is expected t o contribute to greater social accountability by improving the justice sector M&E, promoting a greater use o f M&E results for policy developmenthmplementation, and social control functions, and strengthening the information base o f the Judiciary to achieve greater credibility. 63. The proposed Project will address the priority justice sector issues defined in the National Development Plan, and the Judiciary Strategic Plan, including the development o f a few innovative approaches to enhancing access t o justice through formal and non-formal mechanisms (decentralization, conciliation). 64. A s in the case o f the LILY Project will only work in the country's largest urban centers the where most justice services demand is located. For non-urban areas, the Government (with the 25 assistance o f other donors like U S A I D and EU) has developed separate programs that include dispute resolution components targeted to vulnerable groups in those areas, like indigenous peoples or Afro-Colombians. 65. The possibility o f addressing indigenous people's justice issues was considered. However, the final decision was not to involve the Bank in this area because other donors (the EU in particular) are very active with a significant amount o f financing. Moreover, as the Project setting i s urban, indigenous groups are highly unlikely to be affected. Nevertheless, a social assessment was undertaken during Project preparation that included attention to, and documentation of, indigenous groups' preferences and priorities along with other relevant stakeholder groups (poor, women, youth). The consultation process also included representatives o f indigenous groups. The assessment was conducted between April - September 2008 by local experts. The social assessment process has provided sufficient information to make a judgment regarding the non-applicability o f OP/BP 4.10. Table 5. Safeguard Policies Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OPBP 4.01) 11 [XI Natural Habitats (OP/BP 4.04) [I [XI Pest Management (w [I [XI Cultural Property (OPN 11.03, being revised as OP 4.1 1) [I [XI Involuntary Resettlement (OPBP 4.12) [I [XI Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) El [XI Safety o f Dams (OPBP 4.37) [I [XI Projects in DisputedAreas (OPBP 7.60) [I [XI Projects on International Waterways (OPBP 7.50) 11 [XI F. Policy Exceptions and Readiness 66. The proposed Project will not require any exceptions from Bank policies and i s in compliance with all applicable Bank policies. The Project meets Regional criteria for readiness for implementation (the PCU has been established and the operational manual, AOP and procurement plan, and draft TORS for activities scheduled for the first year o f implementation have been reviewed and approved). 26 Annex 1: Country and SectorProgramBackground COLOMBIA: Justice Services StrengtheningProject A. The 1991 Constitution and the Justice Sector 1. Revamped OrganizationalStructure 1. After earlier attempts at constitutional reform failed, a new Constitution was promulgated in 1991. Strengthening the Judiciary and establishing a more balanced distribution o f powers were primary aims o f this Constitution, which also sought to bring peace to a nation long torn by violence. 2. The Constitution provides for the traditional three branches o f government - legislative, executive, and judicial. The executive branch i s headed by a President who i s head o f state, head o f government, and chief administrative authority. The President i s elected by national popular vote for four-year terms. The legislative branch i s a bicameral Congress elected through a system o f proportional representation for four-year terms. The 102-member Senate has 100 members who are elected nationally and two who are elected by indigenous communities. The House o f Representatives has 161 members elected by departmental districts. 3. The 199'1 Constitution drew a complex justice sector organization (See Figure 1). It includes agencies o f the three branches o f Government. O n the executive side, the Ministry o f Interior and Justice (MIJ) articulates sector policies, with a particular focus on access, but various other agencies have also justice-related functions. The legislative branch has very limited justice functions in connection with the impeachment o f the State high officials. Military and private bodies also have some limitedjudicial functions. 4. The backbone o f the justice sector is the Judiciary Branch, that includes a separate CC, and a Superior Judicial Council (Consejo Superior de la Judicatura-CSJ), the governing body for the Judiciary. The Constitution also established the FGN responsible for criminal investigation and prosecution, and the Ombudsman's Office (DdP), which incorporates the Public Defense function. 5. The court system i s separated into five basic jurisdictions: ordinary, administrative, constitutional, peace and native communities. Ordinary i s the largest area and encompasses, civil, labor, family, criminal and agrarian cases. Ordinary jurisdiction is exercised at the lowest levels by Municipal Courts (Jueces Municipales), above which are the Circuit Courts (Jueces del Circuito), then the Superior Courts (Tribunales Superiores), and finally the Supreme Court (Corte Suprema de Justicia - CSDJ). 27 F i g u r e 1- Structure o f the Justice Sector ~ Ordinary Senate Military Courts Conciliators Superintendencies Jurisdiction (Financial, Chamber of Arbitrators Corporations) Supreme Court Representatives Mediators Notaries Superior Courts Friendly Police Civil COUN Facilitators Labor inspectors Labor murts Family Criminal Courts Defenders Familycouns Agarian Courts Specialized coum Administrative Jurisdiction State Council Administrative Superior COUN L-J Administrative Constitutional Jurisdiction ConstiMional Peace Jurisdiction Justices o f the Peace Community Jurisdiction: Traditional Authorities Superior Council orthe Judicature Administrative Chamber Disciplinary Chamber I Attorney General's Ofiice 6. Two special features o f the sector, preceding the Constitution, are the separate system o f administrative courts, headed by the State Council (Consejo de Estado-CDE), and the Solicitor General's Office (Procuraduria General-PGN) a body responsible for investigating 28 administrative abuses and generally guaranteeing respect for legality and constitutional rights, with the power to impose sanctions (including the dismissal o f public officials). PGN i s regarded as an important check o n corruption and other abusive actions. I t s findings on alleged crimes must, however, be forwarded to FGN for further action.' 2. Innovative and effective mechanisms 7. The 199 1 Constitution also effected several changes relevant to sector operations, among them: (a) the addition o f more constitutional rights and an effective method for accessing them, in particular the Constitutional protection action or tuteZa (to protest violation o f constitutional rights, similar to the amparo used elsewhere in LCR); and (b) various provisions to accelerate the transition to an accusatorial system o f criminal justice. 8. The Constitution also favored the creation o f out-of-court conflict resolution mechanisms. Executive agencies, along with local governments and some private entities joined forces to support ADR and community justice systems to provide justice services without the excessive formalities and high costs o f the traditional sector institutions. 9. A new Criminal Procedures Code was enacted in 1992. However, the implementation o f the new Code was generally regarded as unsatisfactory, to the point that another code was introduced in 2000, and s t i l l a third passed in mid-2004 plus a complementary package o f amendments, intended to facilitate the transition to the accusatorial system, including the stipulation that the new Code would enter effect in 2005 only in two areas (Coffee Axis and Bogota) and be fully operative in the whole country by 2008. 3. Traditional and modern justice paradigms 10. The organization and functions o f the traditional justice sector institutions (CSDJ, C D E and the courts underneath) reflected the traditional individualistic justice paradigm in which each citizen was entitled to have "his or her day in court" but could wait several years to that end. This paradigm does not work properly for a "mass society" in which the complexity o f social and economic relations generates an enormous amount o f conflicts that may potentially require judicial attention. Legislation has also become more complex, generally overwhelming the capacity o f an isolated judge to respond to the citizens' demands for quick and effective conflict resolution. ' Justice sector institutions are predominantly staffed by lawyers a profession in wide supply in Colombia. In 2004, almost 70,000 students entered law schools, while the year before (2003) around 6,700 students graduated from an accredited law program. Colombia had a rate o f 304.5 lawyers per 100,000 inhabitants in 2004, a 14% increase over the number o f attorneys registered in 2002. A new disciplinary code for Colombian attorneys came into force in 2007. Disciplinary Chambers o f the CSJ at the central and local levels hear cases filed against practicing attorneys for offenses and misdemeanors established in such code. 2002 I 2003 2004 Number of Attorneys I 119.320 127.036 135.785 29 11. Normative dispersion makes more difficult to understand and enforce the applicable legislation. Such situation i s generated by a continuously changing legislation and the absence o f a unified system clarifying which provisions are in full force and effect and which have been abrogated. There i s no single, authoritative compilation o f the Colombian normative system that facilitates consultation by State officials or the citizens at large.' The MIJ i s working o n centralizing the national normative system, including a body o f case law. 12. Some o f the institutions established by the 1991 Constitution (CC and FGN, in particular) were specifically conceived to provide a "modern" justice service adapted to the needs o f a "mass society", and specific mechanisms like tutela were designed to rapidly adjudicate key social conflicts. The tutela success and the solid reputation o f C C reflect citizens' satisfaction with the "modern" justice but have led t o an unexpected transfer o f decision-making responsibilities from the traditional court system to CC. This process has generated resistance and confusion among sector operators, and even proposals to limit tutela. CC decisions with macro-economic impact have also been criticized by Executive agencies afraid o f the budgetary implications o f certain landmark decisions that generate obligations o n the State. lo 13. In practice, conflicts that are not properly solved through administrative mechanisms (lay-offs, strikes, credit indexation) end up being resolved by a ruling o f the CC that may be in contradiction with previous rulings o f the traditional courts. This has been an undesired outcome o f the credibility o f CC that is obviously resented by the other courts, even though C C carefully selects the cases that will review as court o f last resort in order to develop a consistent caselaw structured around a few landmark decisions each year. l1 B. Sector strengths and recent progress 14. Radical changes obviously take considerable time t o absorb, and for the past 17 years, , Colombia's justice sector has been striving t o make adjustments. At the time the 1991 Constitution was enacted there was little in the way o f an implementation plan, and thus the new and old organizations took several years just to assume the form and fimctions they were intended to have. One o f the immediate and most visible impacts o f these changes has been the expansion o f the sector's personnel and budget; much o f the increment went to the FGN which at one point accounted for h a l f the sector budget and employment. Owing to growth in other organizations it n o w accounts for between 30 and 40 percent o f each. 15. Promised improvements in operations and output have been slower to emerge, a fact which has occasioned criticism, especially as regards overall productivity, delays and backlogs, crime control, and cost-efficiency. Many o f the criticisms may be valid, but there has been T h e Official Gazette (Diario OficiaI) is regularly published but does not have a standard index system that facilitates reference and cross-reference. N o consolidated statutes have been officially published. Private editions are available but at high cost that limits access to the non-specialists. lo Conflicts not related to Constitutional rights (like contractual obligations) are deprived o f effective and reliable dispute resolution mechanisms thereby generating a growing discontent among private parties that contrasts with the overall satisfaction about Constitutional protection. " Some jurists have suggested that the current situation i s the result o f the lack o f a single "social" jurisdiction designed to properly address the most common conflicts in a "mass society" (labor, taxes, and torts). Only that jurisdiction could provide stable "rules o f the game" and overall legal security in a prompt and effective manner. 30 progress. The advances, and the advantages they offer for Bank assistance, are summarized below. 1. Strong transparency and independence 16. Unlike some o f i t s neighbors, Colombia's justice sector scores relatively well in these areas, in part because it always has, in part because o f changes worked in the last two decades. Independence i s in fact in some cases so developed that it has become an issue in its own right -- as for example with the complaint that the C C has been too ready to overrule government programs. Transparency also seems well developed. 2. Low corruption 17. Corruption for the most part does not seem to be a major issue -- except for the FGN where the actions o f several o f the Regional Prosecutors General have been questioned, and there is evidence o f problems at lower levels in the institution related with alleged connections with politicians, drug traffickers, or paramilitary groups. Weak management systems and the independence o f individual prosecutors (also reduced in the recent legal amendments) are partly t o blame, but it has also been suggested that some higher level officials may control internal networks. 3. Improved governance 18. After the 1991 Constitution, The most important advances here have been made by the CSJ which has taken over functions formerly performed by the MIJ and the high coufts o f the three court systems. The process has been slow, has required numerous legal adjustments, and is s t i l l hampered by the legal framework itself. I t also has provoked resistance among the judges (whose work is now supervised and evaluated) and the other high courts (whose occasionally high handed use o f institutional resources has been greatly curbed). W h i l e further improvements are needed, the CSJ should be recognized by the existing advances in resource use, oversight, and forward planning. By contrast, in the FGN a good management system has failed t o develop. 19. Although more needs to be done, the latest attempt at criminal code implementation is a sign o f progress in inter-institutional coordination mechanisms, as i s the awareness among the different organizational actors o f h o w weaknesses o f others will affect their own performance. For instance, during Project preparation the FGN requested the Bank to help identify ways t o improve coordination among the various organizations responsible for tracking corruption. 31 4. Robust professionalism 20. One o f the most striking characteristics o f the sector organizations as a whole is the above average (for LCR) quality o f human resources, something which preceded the constitutional changes but was doubtless further advanced by a new emphasis on competitive merit appointments and secure tenure. In the Judiciary, judges must compete, along with outside candidates, whenever they want a promotion or a change in their field o f specialization. Two notable exceptions, if only o n the count o f secure tenure, are the public defenders, who are s t i l l hired on "part-time contracts," and the majority (15,000) o f the FGN's employees who serve under a non-tenured system ("libre nombramiento") -- fulltime, but lacking permanent appointments. 12A similar problem exists for judicial staff; roughly 60 percent o f judicial employees (mostly administrative, i.e. non-judge) have provisional status. Throughout the sector training programs and evaluation systems have either been introduced or vastly improved during the past decade. The CSJ has actually fired first instance and appellate level judges (magistrados) for not keeping up with their workloads, a fact explaining some o f its lack o f popularity with the Judiciary as a whole. 5. Focus on sector performance 2 1. Management information systems s t i l l require considerable work (and automation), but Colombia has a much longer tradition o f using empirical data to analyze sector performance. Organizational leaders are generally aware o f the shortcomings and are attempting to address them. Nonetheless, they use what data they have and are attuned to their implications as regards a generally l o w level o f productivity and the need to improve it. They also make use o f local universities and consulting firms to do empirical studies o n topics related to performance. Hence, there is not a resistance to viewing performance as a measurable commodity or t o doing or contracting analytic work to explore weaknesses. 6. Attention to the needs o nontraditional clients: f 22. Various sector actors have begun to pay more attention to barriers confronting the poor majority, as well as other vulnerable groups, in claiming access to justice. The police, the FGN, and the M I J have all introduced experimental programs aimed at more integrated treatment both o f victims o f crimes and parties in c i v i l suits. This has been done spontaneously -- not as the result o f legislative orders and thus is an indication o f recognition o f the problems and a willingness to invest in the solutions. In addition, the tutela, while it may be subject to considerable abuse, now offers those believing their rights have been violated immediate attention by the courts, without the need for formal representation. Still, the most important barrier to access has been and continues to be the requirement for legal representation for other types o f cases. 12. Nevertheless, FGN's restructuring process i s now making progress as provided by the National Development Plan. 32 C. M a i n sector issues 1. Insufficient or inadequate output 23. Here there are a series o f related problems -- the quality and quantity o f organizational output, i t s timeliness, its appropriateness, and its costs. They affect all areas and all organizations, if in different fashions. As regards the courts, it should first be mentioned that litigation rates (less than 4,000 per 100,000 population) and average caseloads (less than 400 annual filings per first instance judge) are medium l o w for the region. The clearance rate (annual dispositions over new filings) has been rising, and for 2007 was 95 percent for the Judiciary as a whole. However, this i s insufficient to cut into backlog which thus continues t o accumulate, although not all really composed o f active cases.I3 24. Delays are said to be excessive, but again, statistics are not sufficient. Problems on the criminal justice side can, however, be largely attributed to the FGN which is said t o have a cumulative collective backlog o f over one million cases. The DdP carry an extremely small caseload (somewhere between 50 to 80 cases annually); with that level o f production, the recent triplication o f its staff will s t i l l not meet existing demand. One result o f the overall situation is the l o w litigation rate i t s e l f -- people avoid the courts because they do not expect a timely, adequate solution, and in the case o f criminal complaints, often seek less socially desirable alternatives. This means that another presumed effect o f a well-functioning justice sector, the reduction o f conflict and violence and the encouragement o f rule-based behavior, i s not being achieved. 2. Limited access 25. Despite efforts to provide partial solutions, the fact is that sector services are not available to many citizens, because o f geographic barriers, costs (in particular, those o f hiring a lawyer), lack o f confidence in the system, and simple ignorance. The Constitution and the recently approved Judiciary Statutory A c t guarantee a judge and police staff to every municipality, but cost and on-going civil conflicts in some regions have made it impossible to comply fully. Numerically (in terms o f the number o f citizens affected) this i s a lesser problem, but one with larger repercussions as it i s vital to expanding the state's presence and promoting national integration. 26. For those living in more populated areas, and especially in one o f the larger cities, the barriers are those more typical o f LCR as a whole -- the requirement for representation and the insufficiency o f free legal services, lack o f confidence in a system which often does provide unsatisfactory responses (long delays, unenforceable judgments, or an inflexible legal framework). Given the pervasive levels o f violence in the country (most but not all due to the actions o f illegal armed groups) the lack o f access may also provoke more o f the same thus -- this is a question not only o f providing a basic service, but also o f promoting social peace. 13. It should be noted that the clearance rate does not distinguish between dispositions o f cases entering in earlier years or in the year for which it is calculated. Thus where there is an active backlog, a high clearance rate could coexist with significant delays. 33 D. Underlying Causes l4 1. Complex and rigid legalframework 27. In a Region known for complex and overly rigid legal frameworks, Colombia may s t i l l be an extreme case. The 1991 Constitution contains an extraordinary amount o f detail as regards sector organization (including that within particular agencies), operating procedures, and even placement o f service units. The statutory (organic) laws and even the procedural codes fill in other details in an equally inconvenient fashion. If the sector i s to advance further, the current legal framework will have to be changed, but more than that, the new laws must be written with a different philosophy -- less emphasis on grand principles, wishful thinking, and novel innovations, and more emphasis on practical results and built-in flexibility. Accompanying these tendencies, and perhaps partly explaining them, i s another characteristic - what i s traditionally called "legal formalism" and what an Eastern European author has dubbed the "Mediterranean model" (Uzelac, 2008). l5 this i s meant a focus on form over substance, when the form relates By t o meeting deadlines or other basic procedural requirements (including but not limited to filing the complaint correctly, precisely, and completely the first time).I6 2. Old-fashioned legal and political culture 28. The l o w litigation rate suggests that Colombia does not have a litigious culture. There may, however, be problems as regards a willingness to negotiate or settle differences, a clear problem for the new criminal procedures code which puts a premium o n such mechanisms. The Mediterranean model mentioned above may be part o f this culture, and also help explain why a generally l o w litigation level so thoroughly congests the courts - relatively few cases may be filed, but once in the system, they take o n a complex life o f their own. O f course, needless complexity i s in the eye o f the beholder. It can buy time for those attempting t o avoid justice and raise fees for counsel. Unfortunately, it can become so ingrained that even when these ends are not served, the practice prevails. Despite changes to the civil procedures code to allow judges to curb superfluous pleadings and motions, the judges so far have not been willing to exercise these powers. 14. These factors are first discussed in a general fashion, with further attention to detailed findings and clarifications from PHRD-financed research provided in the next section. The factors discussed here are often identified as issues, but they are actually causal -- they are simply possible explanations for the unsatisfactory outputs. They are the factors any reform project must tackle if i t proposes to improve performance. There are other causes the project cannot address, for example the socio-economic context and the difficulties o f providing services equitably to a very heterogeneous population -- many poor citizens, a modest size middle class, and a small group o f very sophisticated economic elites -- the economic constraints to expanding services further, civil violence (the diminished but still persistent violence), and the drug economy. 15. Uzelac, A. 2008. "Reforming Mediterranean Civil-Procedure: I s There a Need for Shock Therapy?' in Civil Justice between Efficiency and Quality: From Ius Commune to the CEPEJ, C. H. van Rhee y A. Uzelac (eds.). Intersentia, Antwerp; 7 1-99 16. At least in Northern Europe (Uzelac's counter-model) and common law U.S. and Great Britain, the notion that a lawyer might miss a deadline or f i l e incorrectly was so alien that a short, informal survey among litigators and judges conducted by one o f the authors left them unable to provide suggestions as to how to resolve problems they rarely encountered in their own systems. 34 16. Other mental models that clearly impede certain kinds o f change include a tendency to see laws as an end in themselves, not as a lever to encourage behavioral change; sector members' lack o f understanding, even hostility to being managed; a distrust o f power so strong that every time it i s granted there i s an immediate move to set up a countervailing organization. Similarly, there seems to be an old-fashioned model governing the way Colombians perceive their justice institutions and relate to them. The average citizen does not appear to sufficiently trust the courts nor see them - or the relevant dispute resolution mechanisms - as the relevant venue where to seek justice. This is probably due to lack o f information but also t o a historical disconnect between citizens and the institutions that are supposed to work for them. 3. Poor organizational management 29. Although management practices are improving in the sector, many problems remain. A s compared t o other governing bodies in the region, the CSJ does relatively well, but its structure, partly set by the Constitution and by ordinary law, `is very cumbersome and i t s members s t i l l have to reach an adequate collective vision o f their role and a strategic approach to conducting it. The FGN has been a management challenge for most o f its existence. Again part o f the impediments arise from the legally defined organizational structure, but prosecutors like judges seem unattuned to the rigors o f management, strategic planning, adequate analysis, and implementation. The DdP i s hampered by its small budget, lack o f permanent employees, and the contracting system for the defenders themselves. In these cases, the absence o f a strategic vision is evident, planning tends to have a short time horizon, and while every office has projects it wants financed, whether very large or very small, none appear linked to a longer term 17 development plan. 30. Coordination is far better than elsewhere and organizational leaders endorse the concept, form committees to advance it, and in the case o f the criminal procedures code have engaged in joint activities. Rather than the tendency seen elsewhere in L C R to simply deny the relevance o f coordination, the problem's origins may lie in different organizational and leadership styles, and in poor management techniques across the board. Another result o f the management problems mentioned above i s the insufficient capacity o f the Judiciary to effectively communicate with the public. The Judiciary counts with a very small communications team that is responsible primarily for media relations. The communications office lacks the human resources and know-how to develop long-term alliances and establish mechanism to listen and reach out key stakeholders. 4. Complex organizational choices 31. Colombia's justice sector i s unusually complex, both as regards overall structure and internal organization. In i t s e l f this might not be problematic, but the system also features considerable redundancy and a certain less than logical dispersion o f functions. Both the M I J and the FGN have witness protection programs, differentiated only by the kinds o f witnesses they protect; the MIJ for some historical reason has a department for holding sequestered goods 17. The 2007-2011 Judiciary Strategic Plan has been integrated in the National Development Plan while other sector institutions have developed their o w n separate plans. However, the case of the implementation o f the new criminal procedures code shows that n o sufficient analysis was conducted to identify a l l the implementation needs, and thus requests for assistance and self-help projects tended t o focus in a few areas, leaving enormous gaps. 35 although the FGN i s responsible for storing evidence in criminal cases; both the PGN and the DdP protect defendant rights in criminal trials; and programs to improve access for poor citizens have emerged on an ad hoc basis, sponsored by various organizations and donors. 32. Given resource limitations, some consolidation o f efforts seems in order, but legal rules and vested interests discourage this development. The above mentioned tendency to build in extra checks on power i s another limiting factor. The most notorious example involves the legal restrictions on the CSJ's ability to choose or remove the Director o f DEAJ. The latter serves for a fixed four-year term during which he or she enjoys considerable discretion as to how the CSJ's programs will be implementedand how resources will be distributed. E. Proximate causes 1. Mismatch between management targets and tools 33. Certain gaps in sector management remain, mostly resulting from the heavy burdens placed o n the CSJ by the executive and legislature. These burdens relate in particular to the need to create new administrative courts, and justices o f the peace. Although the total judicial budget (salaries and investment) has been increased by 13 percent (in constantpesos) between 2000 and 2006, the CSJ has had to create a total o f 278 new judicial offices with an average o f 3.78 new employees for each one. While this still represents less than 5 percent o f present employment, there are additional costs associated with infrastructure, equipment and supplies. While the Judiciary's budget i s not l o w (currently at 1.16 percent o f the national budget, the same as Chile, more than many European countries, but less than L C R average)," asking the CSJ to do more with only slight increases may indeed call for some radical changes in how it handles its resources: 21 percent o f the total budget i s spent o n the CSJ (14 percent) and the high courts, while a l o w percentage (5-7 percent) goes to investment (which includes training at roughly 10 percent o f the investment total2'). 18. As a result o f the studies financed by the PHRD Project preparation grant, the Bank and the Judiciary developed a much clearer picture of the situation, especially as regards the amount and nature of congestion and delays, the various weaknesses of the administrative structure, and the quality and efficacy of the CSJ's mechanisms for internal and external information sharing (See Annex 12, Section C.2). The studies also expanded on the evaluation o f the earlier LIL, looking for practices that might be replicated through this Project, explored the effectiveness of existing mechanisms for coordinatingsector efforts to combat corruption, and reviewed unmet basic conflict resolution needs. All studies both analyzed the existing situation and made recommendations as to improvements. Their most important findings are reviewed below as a means to better defining the problems and the causes as discussed above. 19. According to Albers (2008), a majority of the 46 European countries surveyed in 2002 spent less than 1 percent of their budgets on their courts. However, few have court systems as complex as that of Colombia and the report does not clarify whether administrative costs (often managed by a Ministry of Justice) are included. Albers, Pym. 2008. "Judicial Systems in Europe Compared" in Civil Justice between Efficiency and Quality: From Ius Commune to the CEPEJ, C. H. van Rhee y A. Uzelac (eds.). Intersentia, Antwerp; 9-28. 20. While training arguably can be considered an investment, in most cases it i s included in the operating budget. 36 0 Funds generated by the Judiciary (through interest on accounts, fees, fines and the like) while earmarked for investment expenditures are not entirely used for that purpose - probably because they are not tracked in a timely fashion. 0 The CSJ has established its own parallel structure alongside DEAJ. The functions o f the two overlap and are not adequately defined or coordinated. For instance, human resource management i s handled by three bodies - the EJRLB, the Judicial Career Unit (UCJ) (a unit attached to the CSJ) and the Human Resources department (attached to the DEAJ). The three do not coordinate sufficiently, and all focus more o n process than strategic planning. Moreover, a majority o f the administrative staff has provisional appointments. Whatever the reason, the situation should be corrected. Similarly, and possible explained by this fact, the evaluation process as currently conducted appears to be partial, not extending to all employees. Questions have also been raised, as to the validity o f the points it stresses and the possibly perverse incentives they might generate. 0 Strategic planning i s underdeveloped in the Judiciary. Requests for budgetary increases are not accompanied by a discussion o f why these increases are needed and what improvements they will produce. 34. The study on communication, both internal and external, revealed similar weaknesses - absence o f an institutional strategy, even for internal communications, and failure t o link this to an overall strategic development plan. Both studies included a number o f recommendations, and in the case o f that on finances and human resources, several projects for specific areas (management o f self-generated funds, development o f a human resource strategy, a three stage approach to improving automated systems, etc.). 2. High congestion and long delays 2' a. Ordinary jurisdiction 35. There is a significant difference between the active and inactive inventory; the latter is a problem only in occupying space in the courtrooms (See Figure A. 1.1 below) 21. Methodologies for the CEJ-CIDEM studies utilized existing courts statistics, suppIemented in the first case by earlier studies and inventories, and in the second by a series o f interviews. Both confirmed that congestion does exist, as a result both o f the sheer size of demand and o f delays in processing cases. However, both also confirmed that the situation varied by type of court and proceedings, meaning that recommendations as to remedial measures would also be different. Immediate recommendations were both judicial and extra-judicial. The study o f administrative cases, used a slightly different methodology to establish the extent o f congestion in the Bogota courts surveyed. These courts may be the most problematic as cases against the government are more likely to be filed in the national capital, and because many involve government employees, also more likely to be located there. 37 Figure A.l.l Active and Inactive Inventory, 2003-2007 2.081 2.050 2.017 A 1.950 2 1.850 1.750 1.710 A a 1.650 Active 1.550 Inactive 0 1.450 / I I p/l.411 I I 1.350 / 1.250 1.150 2003 2004 2005 2006 2007 Year Source: CSJ, calculated by Corporacidn Excelencia en la Justicia. 36. The bulk o f the inventory i s in the c i v i l area, although this is also a function o f its larger share o f filings. Some areas (labor, family) with less demand appear t o be rebuilding their own backlog, and this may increase with an economic downturn (See Table A.l.l below; higher percentages indicate greater backlog retention). Table A.1.2 Retention rate (in shadow, 1 Minus @ispositions/Active inventory plus new filings)) by area Jurisdiction 2003 2004 2005 2006 Final Inv. 2006 2007 Final Inv. 2007 Civil 53% 55% 56% 59% 651.722 48% 55% 589.136 48% Family 35% 40% 40% 44% 70.666 5% 41% 67.734 6% Labor 54% 57% 57% 58% 178.629 13% 56% 166.246 14% ChildNouth 48% 41% 63% 64% 37.205 3% 46% 22.129 2% Criminal 40% 41% 41% 47% 181.495 13% 40% 181.515 15% Specialized Criminal 52% 56% 60% 56% 10.380 1% 46% 7.258 1Yo Multiple jurisdiction 43 % 48% 48% 49% 149.744 11% 48% 140.915 11% Family multiple jurisdiction 47% 43% 51% 56% 56.994 4% 47% 43.940 4% Mixed Courts 22% 20% 30% 45% 27.181 2% 27% 12.143 1% TOTAL 1.364.016 1.231.016 n Source: CSJ; calculated by Corporacion Excelencia e la Justicia. 37. In the c i v i l area, 83 percent o f the backlogged cases are procesos ejecutivos and 90 percent o f those are for minimal or minor quantities. While occupying roughly 25 percent o f total annual filings, tutelus only account for a small portion o f the inventory. They contribute indirectly to backlog formation because they are decided first. For the moment the impact may be lessened by their uneven distribution, and the fact that the most heavily affected area i s criminal justice (where they are nearly 50 percent o f filings) which has recently experienced a drop in ordinary filings per judge. 38 38. One reason for reductions in inventory and any improvements in the retention and resolutions rates is that demand (total number o f new filings) has dropped o f f over the last few years while the number o f judges has continued to grow. In courts where filings per judge have decreased (either because there are more judges or less demand), resolution rates have not gone up accordingly.22 This may be attributed to a judicial set point (a tendency to continue deciding the same number or same percentage o f incoming filings). Another explanation could be that judges are receiving more complex cases (the simpler ones having disappeared or been sent elsewhere - e.g. from circuit to municipal courts). 39. Even at its current levels, the overall backlog i s not extraordinary - averaging less than 400 cases per judge. However, it i s not decreasing (and the decrease in 2003 was probably not real - only a statistical artifact) and it too i s unevenly distributed. I t i s apparent that the Judiciary is dealing with t w o fairly distinct situations, caused in part by a mismatch between distribution o f work units and demand. 0 First, there are a large number o f work units, those located outside the major population centers, that continue to accumulate backlogs despite a relatively l o w demand for their services. Congestion here i s caused by slow processing o f cases, but it i s not clear whether this is because o f judge- or client-induced delays. If the former is the case, closer supervision, training in better workload organization, and setting o f minimum quotas may be the answer; if it i s the latter, then some o f the remedies suggested for the second set o f courts, and having more to do with procedural simplification and increased judicial control over dilatory practices, may be in order. In either event, as their contribution to overall backlog i s not great, resolving their problems is not an urgent priority. Second are the courts located in 6 urban centers (Barranquilla, Bogota, Cali, Cartagena, Bucaramanga, and Medellin) where demand i s much higher and congestion i s more extreme, accounting for 62 percent o f the national total. Bogota and Medellin alone account for 38 percent. Generally, these six cities also have the highest retention rates. With some further distinction among types o f courts, changes are most urgently required here. None o f these courts appears to be facing surrealistic levels o f filings, but the most burdened (civil courts, especially at the municipal level, labor and family courts) do receive over twice the national average23. Moreover demand has lessened since the highs o f several years ago (exact year depends on jurisdiction), although it is rising again. 40. While the level o f demand is one explanation o f congestion, the more important explanation lies in the long delays in processing certain common, but relatively simple cases. Here earlier research indicated, inter alia, over 900 days to process ajuicio ejecutivo (simple debt collection). Having eliminated from the calculations "inactive cases" (including those adjudicated but still awaiting enforcement o f judgment - in many instances, never forthcoming), a majority o f the active, backlogged cases has not progressed beyond the early stages o f notification o f the defendant. It would appear that these delays have largely extra-judicial 22. Resolution rates have increased in recent years, but given lower average caseloads we might expect them to increase still more, to over 100 percent. This has occurred in some courts, but not across the board. 23. T h i s s t i l l puts them only at the Argentine national average and far below that for Brazil, Chile or Costa Rica. 39 origins -the plaintiffs inactivity, problems in locating the defendant, delays in seizing goods (where a common reliance on the police i s a problem in i t s own right), etc. Given the large proportion these represent in the civil backlog, and furthermore the tendency for most to be minimal (under 15 salaries) to small amounts (under 90 salaries), a series o f simple solutions may be in order. Objectively, most cases should not take as much time as they do, and thus the remedies all follow similar lines: Use o f the reinstated judge power (perencidn or desistimiento tcicito) t o close cases without any activity. This will not reduce delay in the others or real (as opposed to apparent) congestion but it will eliminate the justification provided for both. Court action authorized by procedural regulations (including default judgments) against parties (both defendant and plaintiff) who violate time limits, engage in other overtly dilatory practices, or for whatever reason do not provide required submissions in the appropriate form or delay actions needed t o move the proceedings along. Setting minimum production quotas for judges and monitoring them.24 Finding ways to speed up the post-judgment stage - and especially the judicial auction. This stage showed the longest delays (per an earlier study) and also i s perceived as being prone to corruption (not under the judges' control). In labor cases, in particular, the need to force the defendant, especially when it i s a governmental agency, to meet procedural deadlines, and to ensure the plaintiffs lawyer provides all necessary d ~ c u m e n t a t i o n . ~ ~ In criminal cases, in particular, the average dispositions per judge appear to have dropped despite the greater number o f judges. One remedy might thus be the quota system. However, one cannot automatically conclude that judges are not working - there may be delays originating in earlier stages o f the procedures, the cases that get t o them may be more complex than before, and there are certainly delays in getting timely submission o f analyses from forensics laboratories. Another problem i s that this demand shortfall may be temporary and that as the earlier actors in the criminal justice chain process their part, the courts will have to accelerate a pace to which they may become too accustomed. In all areas, but especially in criminal cases, assigning tutelas to a single group o f judges so as to relieve the rest o f the disruptions they cause. Also oralizing the tutela to simplify the proceeding.26 In short, in the ordinary courts, the origin o f congestion is more delay than excess demand, but delay itself has numerous causes. Oralizing debt cases is one suggestion - however, 24. This system must avoid perverse incentives. The fact that output i s measured may encourage judges to spend more time o n tutelas because they can be resolved more quickly (and because, where quality it also monitored, a judge has more chance t o shine there). Therefore, tutelas should not be included in the quotas. 25. I t was also suggested that many o f these cases originate in what appears t o be a purposeful underpayment o f pensions and other benefits, and that this issue needs separate attention by Government authorities. 26. There have been more radical suggestions as t o h o w t o handle the tutela, including centralizing it in the Constitutional Court (hardly practical given the numbers) or eliminating its use against judgments (politically very difficult). 40 it bears mentioning that in Western Europe these cases are processed extremely rapidly through a 27 largely written, but very structured procedure. b. Administrative jurisdiction 42. The new first instance courts started with a backlog, inherited from the second instance tribunals. They are quickly building it further, as both their clearance rate and the absolute number o f cases resolved tends t o be lower than in the ordinary courts. The courts specializing in labor cases are the most affected, and as they receive roughly half o f the new filings 28 and 83 percent o f those are repetitive cases having t o do with payment o f benefits and pensions, this is clearly the most critical problem faced by this jurisdiction. If resolved, i t might eliminate the entire congestion issue. 43. The administrative labor courts face the same problems as the ordinary labor courts - lack o f cooperation from the governmental defendants, and possibly the latter's conscious policies o f temporarily reneging o n acknowledged rights. I t was also noted that complainants' lawyers often do not submit their filings in completed form (and delay in paying court fees).29 The recommendation o f a proceso testigo (once adopted for administrative cases) suggests a similar strategy, allowing a judgment for one case to be extended to other identical complaints. O f course, in Colombia, the real questions are why these complaints are so common and whether there might not be a way to attack their cause directly - by ensuring administrative a encies do 3 f not make errors and that when they do so in a systematic fashion, they are sanctioned. 44. Recommendations o f a different type have also been advanced -- for more personnel, more equal distribution o f workload, and some efforts to decrease abuses o f the acciones populares, which while not great in number, seem to pose special problems. However, the key policy action would be that administrative abuses should be discouraged, and that counsel's responsibility for filing correctly the first time should also be reinforced. Limiting the use o f 27. Standardized forms are used for filing complaints and strict limits puts on their contents. This eliminates a major source o f delay - lengthy written submissions by filers including large amounts o f irrelevant material. There i s no "trial" and no judgment unless the debtor can register a valid protest, and enforcement i s through non-judicial state or private agents. In fact in France, the hussier, a bonded private agent, may handle the entire case without a judge. In other countries the judge simply validates the claim and orders payment. Colombia may want to consider these models as much delay seems to originate there in using a trial format for what i s essentially an issue o f enforcement. 28. The forty four new trial courts are divided into four sections. The second section, which does have more judges handles nearly all labor cases. The third section, which handles more complex cases (contracts and non- contractual damages) also appears to be overburdened, but not as much as the second section courts. 29. Colombia i s not unique in this situation, or in the fact that the bulk o f labor cases involve underpayment or non-recognition o f legally established benefits. A Bank study tracked it in Brazil, where the solution has been to batch process the cases and issue template judgments for hundreds at a time (World Bank. 2004. Making Justice Count: Measuring and Improving Judicial Performance in Brazil. Washington, D.C: The World Bank, Report No. 32789-BR). 30. The PHRD-financed study suggested that this was a conscious policy on the part o f a number o f agencies whose staff figured that only a small percentage o f those affected would take their cases to court. 41 appeals is also a possibility; it is evident that appeals are too fre uent and aside from congesting higher courts, also increase delays in reaching a firm judgment. 3 9 45. Aside from the initial backlog (large, but not impossibly so), again the larger problem appears to be the length o f time it takes to process each case, no matter h o w simple. Estimates based o n an earlier study reported an average time o f 13 years to reach final judgment after all appeals. The introduction o f the administrative judges apparently has cut the time at that level to a median o f slightly under a year for the files reviewed. However, the experiment i s too new to track cases through all three levels and thus determine whether adding the judges will reduce overall delay. 46. Moreover, having more first instance courts has increased demand as potential plaintiffs find it easier to introduce legal actions. Because backlog is growing, urgent attention is required, possibly involving some o f the same steps outlined for the ordinary jurisdiction. The State Council (CdE) m a y be more amenable to most reform recommendations. Unless delay is attacked directly, and some way i s found to resolve cases before they get to court, or better yet, to discourage the abuses, more courts are likely to increase demand, and thus congestion and delay. 3. Unmet access to justice needs 47. The complaints about inequitable or ineffective access t o justice and especially t o the formal system have in large part been based on anecdotes and intuition. The PHRD-financed study attempted to add more hard data by conducting household surveys in three medium-and small-sized urban centers (Buenaventura, Cienaga, and Bucaramanga) to identify unmet needs for conflict resolution and distinguish their incidence between poor and non-poor populations. I t also attempted to identify the extent to which respondents found other means to resolve conflicts, either among formal or informal institutions. The study generated some unanticipated findings: 0 While 41.5 percent o f the respondents said they had no conflicts, within this group most said they would go to formal institutions (e.g. those in the justice sector) if they did. Those with conflicts usually had more than one, an average o f 2.5 conflicts per responding household. 0 Both poor and non-poor households had equivalent numbers o f conflicts and both experienced m e t needs (barriers to access or unsatisfactory responses). However, the unmet needs were more common in the poorer households who were also more likely to prefer formal institutions (those in the justice sector). In the one post-conflict city (Cienaga), respondents had more unmet needs than in the city in conflict (Buenaventura) or the "normal" city (Bucaramanga). 0 In all three and in both poor and non-poor groups, the most frequent conflicts had t o do with place o f residence (ranging from noisy neighbors to landlord-tenant disputes), 3 1. The hope in creating the new first level o f courts was that most firm judgments would be reached here - it is s t i l l too early t o estimate the impact, but its seems likely, especially given the incentive systems for government attorneys, that this will be far less than supposed. 42 health, and education, with the latter more likely t o have resolutions sought directly with the relevant agency (Le. the school or healthcare agency) or through conciliation. Interestingly, the non-poor were more likely to attempt resolution at the agency level, possibly because they felt more confident about doing so. 0 One rather disappointing result was the limited tendency to use the Casas de Justicia, multi-purpose entities that had been set up specifically to increase access. Moreover, it appears that unmet needs were less the result o f a lack o f supply than o f perceptions about the difficulties o f using the mechanisms available (lack o f agility, inefficiency, as well as delays and overly complex procedures). 48. The general findings were laid out schematically in the diagram below and in the following tables. Table A.1.3 Justice needs classification & identification eeds Identification Related t o the recognition o f a right that citizens are capable t o identify. Justice needs identified by Simple identification (positive those w h o access to judicial Imply citizen's knowledge of the valuation o f the mechanisms). services mechanisms t o request them through the system. Needs related t o rights citizens are aware they are entitled to. Citizens d o not appeal t o the justice mechanisms due t o inexistence or lack o f knowledge. Justice needs identified by Complex identification; implies t o Even though the bearer knows the justice those who do not the demarcate the different causes o f lack resources available, he/she will not access juridical system them due t o imposed structural barriers ofaccess. (which can be economical or not), o r their excessive complexity and costs in terms of time. Indicate lack o f confidence/trust in the system. Might be related to the lack o f knowledge o f the unenforced rights. JudicialLegal needs not Difficult identification; implies the identified by the population Also t o the Presence of extern Pressures that analysis o f issues not directly related might interfere o n the freedom and the t o the rights, requiring open and decision capability o f the individuals participatory methodologies. Source: elaborated by the athors, based on United Nations Development Program (UNDP) (2005) 43 Table A.1.4 Unmet Dispute Resolution Needs (NIRC) Generated by Access Barriers (Percentage of surveyed users involved in a conflict that found barriers to access justice) Minors 16,7 33,3 08 N.D. 7,6 931 Victimization Personal Security 47,9 40,6 38,9 71,4 21,8 26,l Tort N.D. N.D. N.D. N.D. N.D. N.D. Commercial Commercial 65,O N.D. 5,9 50,O 29,6 35,4 Transactions N.D. N.D. N.D. N.D. N.D. N.D. Claims Public Order 54,6 40,O 383 100,O 24,9 29,s Discrimination 69,4 83,3 11,l 100,O 31,6 37,8 E. Conclusions 1. Judicial Management 49. There is little question about what improvements are needed in the three "macro" areas o f the judicial organization (financial, human resources and communications). While the CSJ does appear to be an improvement over past alternatives, its performance could be improved: The CSJ needs to develop, in cooperation with other sector agencies, a development plan that realistically l i n k s its investment budget and requests for more operating funds to proposed improvements in performance and that takes seriously the problem o f l o w productivity o f all judicial agencies. The recommendations o n better management o f funds generated by the Judiciary need to be adopted. There is, inter alia, potential investment financing that is not being used. Human resource planning needs to be consolidated and coordinated. The problem o f the large numbers o f provisional staff should also be addressed. There is no need for everyone to have permanent tenure, but the choice o f who does should be rationalized. Since access seems less a problem o f supply limitations than o f potential users' distrust o f the system, two lines o f action are needed: first improving system performance and second, developing a communication program aimed at informing and educating those who lack confidence either in the system or in their ability to use it. The CSJ also needs t o become an advocate for rectifying situations outside the sector (e.g. in Government agencies) that affect the Judiciary's performance. Rather than requesting more funds (and judges) to do the Administration's work, it needs to insist that the administrators do their own improvement program. 44 2. Congestion a nd Delays 50. Despite recent declines in overall demand, the courts are at best keeping up with new filings and doing little to reduce overall backlog. The problems seem t o be located in certain courts and jurisdictions where their solutions will have to address the specific causes o f delay. Simply increasing the number o f judges, or even fielding special decongestion teams, will not resolve the problem. Two other popular remedies - oral procedures and automation are unlikely to eliminate the problems, if not implemented wisely (for instance, oral proceedings provide additional opportunities for dilatory maneuvers). If orality is to succeed in concentrating and thus accelerating proceedings, judges will have to exercise more control over litigants. 0 In the ordinary jurisdiction, the major problems are concentrated in six urban centers and within them among the civil and to a lesser extent, the labor courts. Elsewhere in the country, a failure to keep up with demand and cut into backlog i s more likely to be a consequence o f insufficient pressure o n judges to get the work done. In the critical courts and jurisdictions, the underlying problems (also present in the others, but less urgent) seem to originate in judges' failure to manage case progress or to curb lawyers' tendencies t o add unnecessary complications, miss deadlines, and otherwise create delays. The obvious solution is to get judges to enforce the rules, sanction lawyers who violate them, and encourage judges to be more selective as to what additional motions and appeals they admit. This is a n attitudinal more than a legal change and requires acceptance by the judges, the lawyers and the parties. I t might be more easily adopted by targeting the most problematic kinds o f cases - in the c i v i l courts, the debt collection cases and in ordinary labor courts, cases having t o do with non-recognition or non-payment o f legally defined benefits. However, if processing o f these cases can be accelerated, a good part o f the backlog could be reduced. 5 1. The administrative courts have similar problems and it appears that for all cases, and the labor cases in particular, some more radical remedies may be required: Making it clear, if necessary by modifying the procedural law, that submissions will be made o n time and correctly. Taking 60 days to admit a case, while the lawyers continue to add whatever is missing is an unacceptable waste o f time. Admission should be done in a day, o n the basis o f a short check list that a legally trained staff member (ideally in a single intake center) can apply. 0 Either giving the plaintiff responsibility for notification (which should be no problem where a government agency is the defendant) or having the judge do it automatically (preferably via e-mail) without waiting for the plaintiffs request. Again the delays in notification are unacceptable. Adding or increasing legally-authorized sanctions for defendants that delay their responses. 45 Introducing a credible administrative instance before judicialization o f complaints, and where there are signs o f systematic failure b y the agency to comply with established roles, sanctioning this as well.32 0 The creation o f simple forms for the many routine complaints (thereby reducing judicial reading time devoted to extraneous or poorly presented details); the potential for self- filing (via e-mail) for very simple, repetitive issues; and efforts by judges to produce guidelines for handling these same issues and for simplifying the admission process. ,52. With simplified proceedings, more control over counsel, and more onus o n administrative scofflaws, the justice sector could reduce a good portion o f the congestion in i t s administrative courts. The problems are not the Judiciary's doing but largely l i e with the litigators and the administrative agencies and their resolution will require the cooperation o f many other actors. Effective information and communication systems are critical to monitor judge performance in case processing, while monitoring the actions (or inaction) o f the parties. 3. Access 53. Regular surveying i s needed in various settings to ensure the initial results are not overgeneralized. The most important finding o f the first survey o n unmet needs is the lesser importance o f physical barriers than o f those o f a perceptual nature - individuals' distrust o f the formal structures, once they have had experience with them (worth noting is the greater willingness o f the inexperienced t o go to the courts), their rejection o f this solution because o f anticipated delays and complexities, and the greater use o f formal alternatives (the relevant non- judicial agencies) by the non-poor. 54. This leads to several conclusions: that real or perceived poor performance by the courts is a barrier but also that greater information o n and better performance by administrative agencies could be a very useful alternative. If the problem is defined as providing means for resolving conflicts (and not necessarily providing court-based solutions) then the remedy consists o f two inter-related tracks - improving real conflict resolution services by courts and administrative agencies, and educating the public as to their choices and how t o use them. Courts as the forum o f last resort for conflict resolution can also be used to pressure for better administrative mechanisms - as this clearly should be the strategy for the labor cases n o w reaching the administrative courts. 32. Since at present, agencies use the fact that jurisprudence is indicative but not binding to ignore it entirely, this m a y require a legal change. 46 A n n e x 2: M a j o r Related Projects Financed by the Bank and/or other Agencies COLOMBIA: Justice Services Strengthening A. Bank projects Table A.2.1: Summary o f Bank Projects in the Justice Sector DeveloDment Fund (JSDF) Grant B. O t h e r Agencies projects 1. Table A.2.2 presents a summary o f the donor support t o the justice sector. IADB has funded mainly reforms in the Judiciary. USAID and EU have provided technical assistance for the design and implementation o f reforms in the Judiciary and FGN, as well as supported the informal justice programs o f CSOs. 2. The most active donor in the sector is the U.S. with rograms channeled through USAID S and other agencies directly linked to the U Embassy. The former partly supports the implementation o f the Criminal Procedures Code and human rights promotion programs, and the latter are linked to anti-narcotics matters. Most o f the new Code programs have focused o n training, equipment and infrastructure (including some remodeling o f courtrooms to provide for 33. DPK Consulting, Reforma de la Justicia Colombiana. Informe Final, August 2004, pp. 14 -18 47 hearings and oral trials), and the development o f an implementation plan. Although the program i s large, it hardly filled all needs and involved little support for improving organizational management. 3. Prior to the inception o f the H i g h Courts Program, the IADB had a $15 million program to improve management in the FGN that closed in 2002. A similar program for P G N i s expected to close in 2009. A small technical cooperation was given in 2003-2004 to automate records in the department o f MIJ responsible for overseeing State litigation. Table A.2.2 Summary o f Other Donor Project in the Justice Sector Other es Status development agencies IADB Strengthening o f the High Courts: To strengthen legal Under preparation security and the Rule o f Law by: expediting judicial processes and reducing congestion in the Judiciary's High Courts; improving the quality o f legal information; and 0 consolidating the statutory law. USAID Criminal Justice Reform. To support the implementation Ongoing o f criminal justice reform at the national, regional and local levels, so as to promote a more transparent, democratic and effective criminal justice in Colombia, through: 0 implementation o f the new accusatorial system; 0 modernization o f the criminal courts operations; 0 facilitating access to justice through the Justice Houses (Casus de la Justicia) and ADR n methods, i particular justices o f the peace; and 0 fostering civil society participation Justice Sector Enhancement for the Reduction o f Ongoing Impunitv. To contribute to the Rule o f Law and the reduction o f impunity, and to improve the response capabilities o f the justice sector by working on the following criminal justice and citizens' rights issues: preparing sector operators for the new EU accusatorial system; providing criminal courts with modem management and decision-making tools; and 0 facilitating access to justice mechanisms for vulnerable groups (in particular indigenous peoples). 4. There are numerous smaller programs working o n areas o f interest to bilateral donors (Nordic Countries, in particular), mostly on human rights-related themes. The quantity o f these programs has made donor coordination difficult. Only the U S is working directly with the inter- institutional committee responsible for planning implementation o f the new Criminal Procedures 48 5. During the preparation o f this operation, the Bank has closely coordinated with the other donors so as to explore possible collaboration opportunities and avoid duplication o f efforts. Given that this operation includes a management model component which will apply to all courts other than the High Courts, the coordination with the IADB i s particularly critical to ensure that any synergies between the Bank and the IBD project will be exploited. To better spell out the complementarity o f both projects, a single CONPES document will be processed for the two projects, considered as parts o f the same sector development program under the National Development Plan and the Judiciary Strategic Plan. 49 v1 e, x P .- C 0 r l ) e e e e e e e E P U m 9 e 0 8 u U 0 H 4 M .- e c) L 0 a 2 U e m e .- 0 - c) u Q) 3 m c) a" 0 m W 0 on m u -0 B * c\1 Wl 0 4 E s 00 8 x I- 5 v) Q s rr d 0 0 u * v) a v) 2 i2 rr 0 v) 0 .e 0 2 W P 2E: 0 Z * Y 3 Q s 2 E 8 c) cd u a c .e v) 2 + Q CI - a a - m a c E 4 4 s l- l- B * m - ul 0 0 4 E 0 z 3 3 s I s I- 0 0 C s 0 3 c i M 9 c) L 0 8 X U 9 E P c) a2 0 I I 3 m c) I m 7 E 4 rr) 0 3 51 - 3 3 B E 0 I ri I m a -m a E C 4 4 N 3 rr, 0 0 lo e 3 7 L VI 0 U P P e * H 8 - U 5 u % e L 3 li Arrangements for results monitoring Data collection 1. Most o f the reports produced for assessing progress will rely on administrative data produced by the Judiciary and MIJ, professional assessments by independent consultants and field visits by the Bank supervision team. The Judiciary has a good track record on monitoring results o n agreed targets as evidenced b y the work done with the LIL. Surveys and reports commissioned by the Judiciary-MIJ will provide the basis for ascertaining progress in improving the performance o f the Project cities. To ensure the quality o f the information used and o f the reports produced, the guidelines for the operation o f the case-tracking system under the Judiciary's management model, and the justices services supply map o f the M I J will provide for specific data input/collection security measures. The Project will also finance reports by independent consultants; TORs and final reports will be reviewed by the Bank team. Capacity-building 2. Under the Project, the Judiciary-MIJ will build additional capacity to keep track o f court and conciliation centers performance by: (a) developing a detailed M&E plan for the investments financed; (b) preparing TORs for, and assessing reports from, consultants that assess progress in outcomes and intermediate results o f Project components; (c) collecting and validating data from separate court offices, and various Project cities; and (d) producing final impact evaluations. The Judiciary-MIJ will be strengthened through training and technical assistance (including studies, seminars, workshops and conferences) required by the Regional Offices responsible for the implementation o f individual components. The costs o f these activities are included in the respective components. 58 Table A.3.1 Outcome Indicators (First and second phase) OUTC hase) Backlog in the civil, family and labor courts o f Backlog in the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin targeted by the project Cartagena and Medellin targeted by the project reduced by approximately 300,000 cases reduced by approximately 500,000 cases resolved or archived. resolved or archived. Productivity in the civil, family and labor Productivity in the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin targeted by the Cali, Cartagena and Medellin targeted by the project increased by an average o f 50 cases project increased by an average o f 100 cases resolved per judge per year. resolved per judge per year. Court users o f the civil, family and labor courts Court users o f the civil, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin report increased Cartagena and Medellin report increased satisfaction levels (up to 85 percent) in terms o f satisfaction levels (up to85 percent) in terms o f the quality, timeliness and effectiveness o f the the quality, timeliness and effectiveness o f the services delivered. services delivered. Court users o f the civil, family and labor courts Court users o f the civil, family and labor courts in Barranquilla, Bogota, Bucaramanga, Cali, in Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin report increased Cartagena and Medellin report increased satisfaction (up to 80 percent) in terms o f satisfaction (up to 80 percent) in terms o f accountability and transparency. accountability and transparency. 50 percent o f the Judiciary staff in the civil, 100 percent o f the Judiciary staff in the civil, family and labor courts o f Barranquilla, family and labor courts o f Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Bogota, Bucaramanga, Cali, Cartagena and Medellin i s trained and evaluated in accordance Medellin i s trained and evaluated in accordance with the policies and processes developed with the policies and processes developed under the Project. under the Project. Decentralized units in Barranquilla, Bogota, n Decentralized units i Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin Bucaramanga, Cali, Cartagena and Medellin provide services to 350,000 users. provide services to 700,000 users. Certified conciliation centers provide services Certified conciliation centers provide services to 20,000 users. to 40,000 users. 59 Table A.3.2 Output Indicators (First and second phase) OUTPUT INDI OUTPUT INDICATORS (Second Phase) Management model implemented in 234 c i v i l Management model implemented in 7- civil, and labor courts in Bogota, Barranquilla, family and labor courts. Bucaramanga, Cali, Cartagena and Medellin. Performance M&E system implemented in the Performance M&E system implemented in the 700 courts that operate the management model. 234 courts that operate the management model. Case inventory screening completed in the 700 Case inventory screening completed in the 700 courts that will operate the management model. courts that will operate the management model. Second national unmet basic justice services First national unmet basic justice services survey survey completed. completed. Implementation o f the special access module t o Design o f the special access module t o facilitate facilitate decentralization completed. decentralization completed. Technical quality norm for conciliation centers Technical quality n o r m for conciliation centers implemented. approved. 100% o f the proceeds o f APL 2 disbursed 70% o f the proceeds o f A P L 1 disbursed 60 Table A.3.3 - Comparison CONPES Issues-First Phase Project Components CONPES Amount Design o f a management model for selected 1 1 198,450 198,450 courts aimed at implementing oral procedures Implementation o f the management model in 1 1 4,550,487 10,732,917 the labor courts Implementation o f the management model in 1 1 4,176,759 8,333,846 the c i v i l and family courts Design o f the performance evaluation 2 1 99,225 99,225 Implementation o f an M&E system for court I 1 1 I 891,510 1,831,319 peiformance (SINEJ, SIERJU) TOTAL CONPES ISSUE 1 9,916,431 21,195,757 Implementation o f the communications 1 3 540,365 1,3 19,O 10 strategy Establishment o f accountability mechanisms 1 3 66,150 66,150 TOTAL CONPES ISSUE 3 606,515 1,385,160 Screening o f case inventory 1 4 638,272 638,272 TOTAL CONPES ISSUE 4 638,272 638,272 Automated procedures for delegation orders I 1 5 414,669 4 14,669 (despachos comisorios) TOTAL CONPES ISSUE 5 I 414,669 414,669 Training modules aimed at streamlining oral 2 6 170,920 170,920 procedures Implementation o f the new administrative 2 6 1,353,909 1,353,909 management model for EJRLB Design o f a new administrative management 2 6 107,856 107,856 model for EJRLB TOTAL CONPES ISSUE 6 1,632,685 1,632,685 Decentralization strategies in selected courts 3 7 1,857,662 6,270,306 Justice services map 3 7 170,416 170,416 , Justice services supply-demand analysis ' 3 7 353,299 706,597 tools Development o f a technical quality norm for 3 7 45,573 45,573 conciliation centers Implementation o f the technical quality 3 7 247,396 247,396 norm in selected conciliation t 7,440,288 UCP 4 NIA 1.176.867 1,625,000 Unallocated N/A NIA 2.940.215 5,668,169 4,117,082 7,293,169 Total 20,000,000 40,000,000 61 Annex 4: Detailed Project Description COLOMBIA: Justice Services Strengthening Project objectives and strategy 1. The Project development objective (PDO) i s to strengthen the capacity o f the Judiciary and the MIJ to deliver timely, efficient, effective and quality dispute resolution services to citizens. 2. The Project will support key elements o f the Judiciary Strategic Plan sets the foundations for a long term, sustainable reform process based on: (a) stronger institutional capacity in the Judiciary to lead the reforms, as the backbone o f the whole sector; and (b) directly addressing the main needs and priorities o f the court system users. The Plan seeks to ensure effective delivery o f justice services through the efficient allocation o f resources. 3. Project components are closely aligned with these priorities. Components 1 and 2 will strengthen the managerial capacity o f the Judiciary while component 3 will respond directly for citizen demands for decentralization and ADR services. These components have interrelated national and regional focuses. The management model component will support central as well as regional court and case administration. It will concentrate o n 5 cities whose activities represent 60% o f Colombia's justice service demand. Component 1 - Strengthening o f Judicial Case Management (US $11.51 million) 5. Objective: Strengthening o f the managerial capacity o f the Judiciary t o improve the performance o f civil, family and labor courts in Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin. Sector issues and strategies: 6. Modern Management Model: The Judiciary Strategic Plan envisages the development o f a management model covering a number o f court administrative processes t o provide better and faster services to citizens. The Judiciary had already pilot tested the model developed under the LIL (Justicia XYI) and conducted independent assessment o f the pilot between 2007-2008. Box 1. Jusiicia XXI Case Management Model Justicia X Y Z i s an automatic case management for the internal court processes that are part o f a workflow t o deliver the final output o f court operations (a dispute resolution decision o r judgment). Justicia XYI comprises "modules" (mddulos), i.e. a discrete group o f processes that generate key intermediate products within the workflow and could be adapted t o the different requirements o f the various procedural codes. As Justicia XYI was designed and implemented in 2002 for circuit c i v i l courts, the Project will finance the upgrades and adaptations required t o operate in other types o f courts (municipal c i v i l courts, labor and family first instance and appeal courts) under current technological standards. 62 7. Because o f the different levels o f readiness o f the Project cities and the particulars o f each jurisdiction (civil, family and labor), the management model will be redesigned on the basis o f the LIL model similarly structured as a set o f independent, self-standing modules to be implemented for improving service delivery standards and performance. For each city, CSJ will determine the specific sequencing o f such modules. The following i s a summary description o f the modules that will be redesigned under the Project: Traditional modules 0 Document Management: The model will provide uniform procedures for the receipt and distribution o f judicial documents through a single, Internet-based system. In addition to the filings and service o f process v i a e-mail, a "judicial pouch" mechanism will replace the current physical mailing system among courts and the central offices o f the Judiciary. 0 Scheduling o Proceedings: A major bottleneck for most court users is the scheduling o f f hearings and other proceedings. The management model will include scheduling modules which will provide data on current status and applicable deadlines, and will transfer such data t o the case tracking system. I t will also monitor changes induced by the parties o imposed by the judge. Case Status Reporting: A modem system for case status reporting will also be attached to the management model, including: (i) information accessible for different users; (ii) filing procedures to ensure the location o f active files, together with security safeguards; and (iii) digitalization o f selected files for inclusion in a database t o reduce f i l e storage needs. New Modules (developed under the LIL) 0 Case Tracking: The Justicia X X I case-tracking system monitors court performance, and keeps the court system clients informed about the status o f their cases. However, the new management model will upgrade that system by: rn identifying procedural bottlenecks that determine recurrent delays and congestion, and proposing reduction strategies; and rn developing new standards for effective monitoring o f case status requests and judicial deadlines. This system will also generate statistics o n individual courts' performance. It will include: (i) "check-points" and "alert" mechanisms, in accordance with the particulars o f each subject matter jurisdiction; (ii) quality control devices to ensure the continuous update and reliability o f the information; and (iii)special control modules accessible only to central offices with oversight functions, e.g., for judge evaluation in accordance with the standard performance indicators determined by CSJ. 0 File archiving: The operation o f the Judiciary's archival facilities is a major bottleneck for justice services delivery. The implementation o f the new management model will comprise: (i) central archive offices reorganization and archivalhetrieval procedures redefinition; (ii) physical space allocated to file storage refurbishing, including the installation o f equipment to prevent f i l e deterioration; (iii) interface between the archives 63 module and the case tracking module; and (iv) permanent computerized archive databases. New Modules (to be developed under the Proiect) 0 File Screening: For Colombia's judicial statistics to be reliable, the courts' nominal workload has to be refined by differentiating between activehnactive files. A screening system i s required for the early archiving o f inactive files under the provisions o f the desistimiento tucito. The management model will provide: (a) rules and procedures for the identification o f activehnactive files, and early archiving o f inactive files; (b) support tools for periodic archiving; and (c) information tools for users about archival status. Virtual Courtroom: Based on the experience o f the Judiciary with the implementation o f the Code o f Criminal Procedures, the management model will extend virtual courtroom and e-justice tools (court interconnectivity, video conferencehecording, digital files, e- mail notifications and submissions, call centers, help desks, I P telephony, and digital signature) to the civil, family, and labor courts, to facilitate the implementation o f the oral trial system. Information generated by a robust technological platform will be shared with other sector agencies through appropriate interfaces. 8. Communications Systems. The complexity o f the supply side o f the Colombian justice sector frequently generates confwsion among potential users. Common citizens are not sure about the most appropriate mechanisms to access justice services. This information barrier may diminish the legitimacy and credibility o f sector institutions. The justice sector needs to adopt a modern approach towards communications to be better anchored in the interconnected society o f the 2 1st century. 9. Apart fiom isolated press communiques, n o substantial communications activity is conducted by sector institutions. The sector does not count with a medium or long-term communications plan that i s proactive, strategic and comprehensive in scope. Such a plan is key as strengthening the Rule o f L a w in Colombia requires that citizens be aware o f the potential benefits arising from the services provided by sector institutions. Otherwise, the continuous complaints about congestion and delays could easily lead t o a greater cynicism and isolation o f the justice authorities which in turn would translate into even less popular interest in accessing or improving sector services. 10. The sector needs to reestablish public trust in its institutions. It could start by showing that it is open to listening to the needs, concerns and aspirations o f the various stakeholders regarding the provision o f justice services, and then move o n to disseminating the efforts t o improve those services and to soliciting feedback on possible reforms. This would entail, among other things, the fostering o f a broad debate on the provision o f justice services that has not taken place in Colombia. 11. A major challenge o f any communication strategy for the justice sector i s improving the media coverage o f the activities undertaken b y the sector institution. Nowadays, most o f the information about the sector that reaches the media i s negative and focuses primarily o n 64 scandals; while it i s not realistic to expect a sudden and drastic change in the way the media cover the courts, a consistent and proactive communications program determined by sector authorities could potentially correct this trend. To the very least, it would reduce the confusion that frequently arises about the role o f the M I J and the reform proposals advanced by the Executive and would ensure that the various institutions o f the sector coordinate their messages and speak in a coherent and unified voice. 12. The strategy developed with PHRD financing would allow the sector at large to develop strategic alliances with key counterparts: other public sector institutions, and decision-makers in the private sector and civil society. These new partners are essential t o turn the complex political economy o f the sector to the advantage o f justice institutions, in particular CSJ, the most vulnerable from a communications standpoint. Public education campaigns, media outreach, and citizen cultural change will be required to counteract distrust. 13. Proposed Project approach: Within the broader framework o f the Judiciary Strategic Plan, the Government and the Judiciary have chosen the improvement o f justice service delivery as the Project focal area, based o n the strengthening o f the managerial.capacities o f the civil, family and labor courts in six major cities. This strategy will enable the Judiciary to generate a critical mass o f service delivery improvements. 14. As a starting point, a management model will be developed to govern the day-to-day court operations. This component will finance technical assistance to design and subsequently implement such model t o effect changes in the main court work processes. I t will help the broad use o f oral hearings in court proceedings, according to the new procedural regulations that have extended orality from criminal proceedings to the non-criminal courts. 15. The management model will be flexible to reflect local realities (in terms o f court sizes, human resources, infrastructure and logistic resources) and jurisdictional requirements (level o f jurisdiction, workloads). I t will provide for multiple courtroom facilities setups that allow the specialization recommended by the PHRD-financed studies for the handling o f tutelas or active backlog. 16. In addition to improving the quantity and quality o f justice services under subcomponent 1.1, subcomponent 1.2 will make basic information available to the public about the functioning o f sector institutions by supporting some communications and accountability elements o f the Judiciary Strategic Plan. The Project will finance the awareness-raising o f the Colombian population about the value o f an independent, competent and equitable court system. I t will also support strategic alliances between justice sector institutions and private sector/civil society organizations, as a mechanism to improve the justice sector's public image through a more open and fluid relationship with external stakeholders. 17. Activities to be financed: Goods, works, consultants' services, non-consultant services, training and operating costs for the following subcomponents/activities. Subcomponent 1.1. Improvement o f the efficiency o f justice services management 65 For the labor, civil and family courts 0 Design o f a management model applicable to first instance and appeal courts aimed at reducing congestion and implementing oral procedures based on the management model developed under the LIL for the circuit civil courts by: 0 conducting a review o f the existent management model, and identifying the major bottlenecks in the operation o f such model; and 0 structuring a new model that ensures efficient processing o f cases, including indicators for each jurisdiction. 36 0 Implementation o f a performance M&E system focusing on quality and productivity, including the provision o f the I C T infrastructure and training, through: 0 integration o f SINEJ (National System o f Judicial Statistics), SIERJU (Statistical Information System o f the Judiciary) and Justicia HI;and 0 establishment o f a data warehouse, alert and bottleneck modules adapted to the particulars o f each jurisdiction to monitor and evaluate performance, and generate reliable statistics and indicators. 0 For the labor courts 37 0 Implementation o f the management model in 335 labor courts, including planning, monitoring and control tools, and virtual courtroom applications. 38 0 Screening o f the case inventory o f the labor courts, for the purposes o f determining active and inactive backlogs, and reallocating inactive backlogs to special purpose 0 For the c i v i l courts 0 Design and implementation o f specific modules for the management model applicable to delegation orders (despachos comisorios) in the c i v i l courts o f the city o f Bogota, aimed at expediting key steps in case processing like notifications, cautionary measures and expert witnesses. 0 For the civil and family courts 0 Implementation o f the management model in 408 civil and family courts o f Barranquilla, Bogota, Bucaramanga, Cali and Medellin, including planning, monitoring and control tools, and virtual courtroom applications. 40 36. Counterpart funding (approximately US$125,000) w i l l finance the adoption o f the revised procedural rules for civil and family cases that w i l l introduce the modem oral system. 37. Counterpart funding (approximately US$2,150,000) w i l l finance the implementation o f the case tracking module in the labor courts, including: (i) adoption o f single file identification numbers; (ii) migration o f ongoing cases to the new system; (iii) setting up o f M&E modules; (iv) establishment o f quality control mechanisms; and (v) application o f productivity improvement tools. 38. The implementation process w i l l comprise: reengineering o f internal processes, I C T systems and tools, standard forms, and internal manuals; 0 assessment o f the infrastructure refurbishment needs, and the I C T equipment replacement and upgrading priorities; and refurbishment o f the physical infrastructure, and replacement and upgrading o f I C T hardware and software. 39. This review w i l l include: determination o f the applicable deadlines and the resources required to finalize active cases; 0 classification and redistribution o f active and inactive cases, and establishment o f a special module for active cases that facilitates further processing and follow-up. 66 0 Screening o f the case inventory o f the civil and family courts o f the same cities, for the purposes o f determining active and inactive backlogs, and reallocating inactive backlogs to special purpose courts.41 Subcomponent 1.2. Development o f the communication systems between the citizens and the Judiciary 0 Implementation o f the Judiciary's internal and external communications strategy to support the implementation o f the management model by: 0 strengthening the communication units o f the Judiciary, and adoption o f a Judiciary's communications manual; 0 awareness-raising campaigns about justice sector issues among other state agencies, civil society, the private sector and the general public; education campaigns about citizens' rights in connection with the justice sector, and the available mechanisms to access sector institutions' services; 0 strengthening the relationship with the media at the national, regional and local levels; and 0 re-designing o f the Judiciary's web portal and intranet. 0 Establishment o f an accountability mechanisms for managers and operators of the Judiciary, aimed at enhancing the role of users in the improvement of justice services, including: 0 adoption o f permanent oversight and feedback mechanisms for the Judiciary, based on the dissemination o f reliable information among external stakeholders; and 0 generation o f dialogue spaces to facilitate the interaction between sector authorities and external stakeholders, about standards of accountability, transparency, competency and effectiveness, like periodic workshops, seminars and conferences. Component 2 - Development o f judicial human resources (US $1.73 million) 18. Objective: T o develop the Judiciary's human resources o n the basis of periodic evaluations and capacity building for the achievement o f measurable service delivery results. Sector issues and strategies: 19. Human resources and justice services delivery. Personnel are the justice sector's most important resource because the sector's principal outputs are the result of intellectual activities by sector operators (`judges and other judicial officials). I C T and infrastructure can improve outputs but at every step o f the process human reasoning and decisions are the main determinant o f the quality and quantity o f the services delivered. 20. The decisions o f some Colombian judges s t i l l reflect a formalistic reasoning in which they tend to apply a narrow and literal interpretation of the laws with little or no consideration o f economic and social factors. Further, judges are unfamiliar with recent changes in fields affecting economic or social development. Judicial outcomes are therefore quite uncertain and 40. For the implementation process, see footnote No. 37. 4 1. For this review, see footnote No. 38. 67 vary widely from judge to judge and from district to district. Even more serious, a typical Colombian judge may not be prepared to conduct an oral trial ... 2 1. Judiciary's human resource management challenges. The Judiciary Strategic Plan recognizes that these issues have to be addressed through human resources development. The main challenge i s to ensure that the three line units o f the Judiciary's in charge o f human resources processes (EJRLB, U C J and DEAJ) work in close coordination and adopt a common strategic approach in areas like: (a) introducing broader concepts o f planning and management, including forward-looking mechanisms to ensure that human resources endowments will meet organizational requirement; (b) generating different tools for judges and other judicial staff; (c) establishing incentives beyond salaries (opportunities for skills development, career advancement, etc.); (d) making use o f M&E to improve performance; and (e) integrating their databases with the databases generated by the management model. 22. Additional challenges for administrative staff Colombian legislation clearly differentiates between judges and other judicial staff; while rules have been developed for the selection, evaluation and promotion o f judges, n o rules exist for auxiliary and administrative staff. Similarly, the EJRLB has only provided training for judges, thus depriving other judicial staff o f training opportunities required for effective delivery o f justice services. The provisional status o f most Colombian judicial staff (other than judges) remains a major issue. 23. EJRLB's role. Originally, the EJRLB was conceived as a training department o f the Judiciary, in charge o f organizing courses consistent with the Judiciary's learning needs. However, EJRLB is moving towards a new approach to ensure quality control o f training delivered, and align training with other institutional priorities. 24. The EJRLB's dual mandate o f providing induction training for new judges as well as continuous education for active judges also generates priority conflicts because o f limited resources and weak institutional capacity. On-line training methodologies can be used extensively to facilitate training but the impact o f training will remain dependent o n the purpose and contents o f course materials, an area where the EJRLB's faces additional challenges. 25. With the assistance o f WBI, EJRLB authorities have conducted an in-depth institutional assessment, and prepared a strategic plan t o play a major role in the delivery o f justice services in Colombia. EJRLB will redefine i t s "business model", so as to shift its focus from merely training judges to provide capacity building programs and tools to improve service delivery in order to match the demands o f a modernizing society. EJRLB authorities benefited from a forum to exchange knowledge with the Judicial Schools in Italy, Canada, France and Spain regarding strategic planning techniques, curriculum development, planning tools and systematization processes. The management model will also require additional specialized training. 26. As training is an integral element o f the professional development o f tenured staff, i t should be consistent with the j o b profiles adopted and the periodic evaluations o f the incumbents conducted by UCJ. EJRLB will design and implement capacity learning programs that reinforce such profiles and evaluation standards. 68 27. UCJs role. UCJ i s reengineering internal practices and resolving bottlenecks in the selection process t o address two key performance issues: (a) assessing the role o f judges as active managers o f their caseload; and (b) establishing a career for administrative and auxiliary staff. Several specific actions are proposed: Validation o f the j o b profiles (comprising functional, educational, ethical and psychological criteria) at the levels o f municipal, circuit and district courts, including the definition o f the j o b profiles for a "proactive judge" capable o f effectively handling jurisdictional and administrative matters (Juez Director del Despacho y del Proceso) under the management model. 0 Development o f competitive examinations to access the judicial career taking into account the type o f legal and nonlegal knowledge required for the profile o f each position o f the Judiciary. 28. Proposed Proiect approach: This component cannot cover all aspects o f the Judiciary's HR strategies but will assist in: (a) introducing modern concepts o f human resources development, and developing capabilities to better apply them; and (b) encouraging coordinated planning among central and regional administrative offices. 29. The component will focus o n strengthening the Judiciary's mechanisms for upgrading i t s personnel's professional development. It sees two main challenges: (i) generating an effective, coordinated human resources policy for administrative staff, which looks not only at selection, but also contemplates present and future system needs and career development; and (ii) adopting broader planning and management mechanisms in EJRLB and UCJ. The human resources actions pursued under this component will support the operation o f the new management model. 30. Activities to be financed: Goods, consultants' services, non-consultant services, training and operating costs for the following subcomponents/activities. Subcomponent 2.1. Carrying out o f training programs f o r judicial staff 0 Design o f a new administrative management model for EJRLB, based o n an evaluation o f its current model. 0 Implementation o f the new administrative management model for EJRLB, through: 0 development o f virtual training modules and contents for induction, training-of- trainers, and continuous education programs; and 0 a new program o n applied legal research for judges, including a needs assessment, curriculum development, manuals and guidelines publications, and evaluation systems. 0 Design o f specific training modules to support the implementation o f the management model developed under Component 1 aimed at streamlining oral-based arguments by expediting case processing and preventing delay tactics, like continuous education training for judicial staff (including administrative and auxiliary staff) on: 0 oral argument techniques for labor, civil and family trials; 0 courtroom administration in labor, c i v i l and family courts; 0 effective management o f civil and labor debt collection cases; and 69 0 non-legal aspects o f family cases involving minors. Subcomponent 2.2. Improvement o f the performance evaluation mechanisms o f judicial staff 0 Design and implementation o f standard performance evaluation mechanisms and parameters for judicial staff (including administrative and auxiliary staff), focusing on quality and productivity to support the implementation o f the management model, by: 0 identifying the strengths and weaknesses o f the current mechanisms and parameters to measure quality and productivity; and 0 selecting quality and productivity parameters adapted to the particulars o f each jurisdiction, and establishing new mechanisms for the performance evaluation o f judicial staff. Component 3 - Facilitating access to justice services (US $2.67 million) 3 1. Objective: T o facilitate access to justice services by vulnerable groups, through generation and dissemination o f reliable information, extension o f geographic coverage and strengthening o f conciliation services. Sector issues and strategies: 32. Information. A study financed by the PHRD Grant o n unsatisfied conflict resolution needs among poor and non-poor households 42 found the types o f conflicts that most affect poor households: housing, health, family, and criminal victimization. Nearly 5 1 percent o f households sampled in Bucaramanga, Buenaventura, and Cienaga do not turn to the justice sector to resolve their conflicts. O f those that do, 27 percent turned to the formal agencies (Judiciary, FGN, police) and 13 percent to the "informal" mechanisms (conciliation centers, jueces de paz, equity mediators, casus de justicia). 43 33. The study compared the conflict resolution needs o f poor households with those o f non- poor households, as well as the steps taken to resolve such conflicts. O f those households sampled, it found that poor households were the ones most likely to suffer from an unsatisfied need, and at the same time, the most likely to turn to the formal or informal justice sector, in spite o f their lack o f confidence i t sector authorities. In addition, poor households reported a higher level o f vulnerability in terms o f crime and victimization than non-poor households. 44 34. To develop effective pro-poor justice policies, future studies must examine demand for conflict resolution in a differentiated manner: differences between men and women taking into consideration social variables such as ethnicity, race, income, and age; differences across geographical regions (urbdrural) and judicial districts. Careful analysis o f the demand for 42. Fedesarrollo, Desarrollo de una metodologia para la identificacion de necesidades insatisfechas de resolucih de conflictos, Bogota, 2008. 43. For a description o f each such informal justice mechanism, see Social Assessment. 44. The findings o f the two studies coincide with national-level studies by DNP that revealed high levels o f victimization but low levels o f resort to the courts for redress. Cited in DPK Consulting, August 2004. 70 justice can help enhance access t o justice if it i s accompanied by the expressed and clear commitment o f the justice sector, and a focused attention on vulnerable groups. 35. Decentralization. Local governments and external stakeholders (in particular the private sector) have requested the Judiciary to consider decentralization alternatives in congested metropolitan areas. The recent experience with the Decentralized Administration Centers (CADEs) in Bogota is particularly promising. That process implies not only physical presence in a number o f subdivisions o f such metropolitan areas but also empowerment o f individual court offices and staff through various forms o f delegation, while the CSJ retains a normative/supervisory role. 36. Conciliation. Among the various ADR methods, conciliation has become the most popular in Colombia to provide prompt and effective means o f dispute settlement at a relatively l o w cost. For instance, conciliation can contribute to rapid contract enforcement, and help solve minor family and neighborhood conflicts. The private sector considers conciliation a substitute for a slow court apparatus; because contract enforcement through the Judiciary is not predictable, some companies prefer to use conciliation even if it involves higher costs in the short term. About 300 formal conciliation centers operate in Colombia, and there i s also significant activity o f independent mediators (most but not all lawyers). 37. Conciliation services in Colombia are provided via conciliacidn en derecho (with lawyers as mediators operating within the applicable legal framework, see Annex B o x 4.1) and conciliacidn en equidad (with non-lawyer mediators deciding in equity). In marginal areas, conciliacidn en equidad i s the ideal conciliation mechanism for poor women and children in family-related disputes. These claims include marital conflicts, child abandonment, termination o f de facto relationships, paternity disputes, custody o f children and visitation rights, child and spousal support, division o f marital property and separation. Conciliation should be the preferred alternative for some o f these cases because the Judiciary does not have the appropriate tools to address these types o f conflicts, and no referral system to Government social services exists. 71 Annex Box 4.1 Conciliacidn de Derecho. "Conciliation based on law" i s gaining increased importance in Colombia. Mediators work from centers approved and supervised by the M I J that can include universities, chambers o f commerce, and centers created by private and public agencies, such as municipalities. From the 11 centers existent in 2001 service providers have grown up to 286 at the end o f 2008. The distribution o f the 9,615 mediators associated with the centers still privileges larger cities and reaches only 52 municipalities. Annex Table 4.1 "Conciliation based on Law", 2007 Area No. o f cases Percent o f total Civil and comercial 39,711 73.77 Criminal 386 0.71 Family 12,061 22.4 Other specialized cases 1I672 3.1 Source: MIJ. Information on the socioeconomic status o f the clients o f the centers i s not available; however, based on the fees charged, it appears that low-income groups and vulnerable sectors o f the population do not use this type o f mechanism. Each center i s responsible for submitting routine reports to the M I J on number o f requests, number o f hearings, and number o f cases resolved. Based on the data observed, it seems that gender- differentiated data i s not collected. 38. M I J is responsible o f ensuring the quantity and quality o f conciliation services. As conciliation seems to be underutilized, MIJ needs to explore more effective mechanisms to realize i t s potential in Colombia. Reliable information on when, where and how to use conciliation i s not widespread and the desirable complementarity with the formal system i s still a distant goal. 45 39. MIJ's review o f the operation o f a number o f conciliation centers in recent years has shown also that improvements in overall performance and efficiency are required. Current issues include a lack o f M&E systems and insufficient training for mediators. M I J wishes to improve current service delivery through quality standards. 40. Proposed Project approach: This component with address some o f the key issues o f the justice sector identified in the social assessment conducted as part o f Project preparation, particularly those regarding enhanced services for vulnerable groups. It will support a portion o f MIJ's strategy for promoting conciliation by bringing low-cost, high-quality services closer to the population at large. The component will also support MIJ's strategy to make the information about the sector more accessible, in tandem with the Judiciary activities included in component 1.2 to enhance the participation and monitoring capacity o f CSOs. 4 1. Activities to be financed: Goods, works, consultants' services, non-consultant services, training and operating costs for the following subcomponents/activities. 45. Since the early 1990s, conciliation in most civil cases i s mandatory. The results o f this procedural requirement appear to be mixed. While some see this as a time consuming extra step, this form o f mandatory conciliation seems to have resulted in less court claims thereby alleviating backlogs. 72 Subcomponent3.1. F o r all justice services Development and dissemination o f reliable information by strengthening the analytical tools to identify and analyze the supply and demand o f justice services, including inter alia: development o f the technological platform (including computer software and hardware) to update the justice services map and support: special search functions and institutional directories; automatic generation o f sector reports and indicators; and dissemination and promotion tools; and carrying out o f a survey o n basic unmet justice needs at the national level, designed to complement the data o f the justice services map, and to identify barriers to access associated with social variables (age, ethnicity, gender, socio-economic status, vulnerability, etc), comprising: selection o f a representative sample, and development o f survey forms and manuals; data processing, screening and validation, and consolidation o f the information in a single database; statistical analysis o f survey results at the national and regional level, and generation o f perception and access indicators; and dissemination o f the survey findings and conclusions. , Subcomponent 3.2. For formal justice services Design and implementation o f special modules for the management model o f the civil, family and labor courts in Barranquilla, Bogota, Bucaramanga, Cali, Cartagena and Medellin, to facilitate: 0 decentralization o f the selected services (like filinghervice o f process, submissions o f claims/counterclaims, written pleadings, etc) in partnership with other State agencies active in such metropolitan areas; and 0 carrying out o f c i v i l works, including the carrying out o f office remodeling and refurbishing o f existing buildings and the remodeling o f user information kiosks, required for the installation o f I C T equipment to allow the decentralization o f court offices and provide accessible service entry points to citizens. Subcomponent 3.3 F o r alternative dispute resolution mechanisms Strengthening o f conciliation services, through: generation o f a technical quality norm for conciliation centers, including: assessment o f the quality control mechanisms currently applicable; formulation and adoption o f a technical quality norm; and dissemination o f the technical quality norm; and implementation o f the technical quality norm for conciliation centers, including: a training-of-trainers program to assist in the application o f the technical quality norm; technical assistance during the certification process under the technical quality norm; and auditing to obtain certification under the technical quality norm. 73 Component 4 - Project coordinationand management (US $1.18 million) 42. Objective: To strengthen CSJ's and MIJ's capabilities t o carry out Project implementation and coordination. 43. Sector issues and strategies: During Project implementation, the Judiciary-MIJ's decision-making capabilities may be limited. D N P i s aware o f these issues but sees the Bank- financed Project as an opportunity to track expenditure efficiency and sector results, aspects that are difficult to track in connection with regular budget resources. D N P has also stressed that this Project should build on the experience o f the LIL, in particular the performance improvements achieved in terms o f outputs o f the c i v i l circuit courts in the 5 largest cities. 44. Proposed Project approach. The Project will develop a solid M&E system and generate statistical data that would not be otherwise available from the Judiciary. The Bank will closely supervise the status o f Project implementation and take prompt decisions o n possible adjustments to the overall Project approach if and when needed based on that information. 45. Activities to be financed: Goods, consultants' services, non-consultant services, training and operating costs for the following activities: (a) operation of: (i) P C U responsible for a coordination, monitoring, evaluation and the administration o f procurement and financial management; and (ii) Project manager in M I J that will liaise with the P C U for the a implementation o f Subcomponents 3.1 and 3.2; and (b) carrying out o f Project M&E activities. Contingencies - (US$2.91 million) - Price and physical contingencies were determined for the four years o f project implementation. (See Annex 5) 74 Annex 5: Project Costs COLOMBIA: Justice Services Strengthening Project Cost By Component and/or Activity Local Foreign Total Loan Total Project U S $million us us U S $million (Loan) $million $million (Loan) (Loan) Component 1: Efficient management o f justice services 5.36 6.15 11.51 11.51 - - . Total Component 3 1.98 0.67 2.67 2.67 Component 4: Project coordination 1.17 0.01 1.18 1.18 Total component 4 1.17 0.01 1.18 1.18 Contingencies 0 2.91 2.91 2.91 Total Contingencies '' 0 2.91 2.9 1 2.91 I Total Project Cost 20 20 46Price and physical contingencies were determined for the four years o f project implementation. Price contingencies were calculated taking into account official forecasts of: (a) exchange rate fluctuations; and (b) annual inflation rates. Physical contingencies were estimated as a standard 3% o f contract price variation. The unallocated amounts w i l l be reallocated to goods, works, and services required for Components 1 through 3. 75 Annex 6: Implementation Arrangements COLOMBIA: Justice Services Strengthening A. Overview 1. The experience in the execution o f the LIL and the PHRD Grant showed that the CSJ has adequate capacity to implement Project activities. As a consequence, the substance o f the implementation arrangements established under such operations will be maintained. Project implementation responsibilities will be vested in the Administrative Chamber o f the CSJ who will review and approve the project's key operational instruments: OM, AOP and progress reports. Field implementation o f Component 1 and Subcomponent 3.2 will be the responsibility o f each Regional Office (Consejo Seccional). M I J will lead the implementation o f Subcomponents 3.1. and 3.3. B. Implementation Period 3. The Loan is expected to become effective by January 2010 and the Project will be implemented over a four year period (through December 3 1,2013). C. Implementing Agency 4. The Project will be carried out by the CSJ and M I J Components 1,2 and Subcomponent 3.2 will be the sole responsibility o f the CSJ, while responsibility for Subcomponents 3.1 and 3.3 will be MIJ's. The CSJ will be responsible for overall Project coordination, and M&E (Component 4) through the PCU but M I J will also have a Project manager for Subcomponents 3.1 and 3.3 with M&E responsibilities. D. Implementation Arrangements 5. The experience in the execution o f prior Bank-financed operations showed that the Judiciary has adequate capacity to implement Project activities. As a consequence, the substance o f the implementation arrangements established under such operations will be maintained. 76 1. Legal Agreements The proceeds o f the Loan will be made available to the CSJ and the M I J through periodic budget transfers pursuant to the Borrower's applicable rules and procedures. 2. Organizational Structure 0 Working Group: CSJ and M I J will establish and maintain a Working Group with membership, structure, functions and responsibilities satisfactory to the Bank. This Committee will comprise representatives o f the CSJ, the MIJ, and D N P and will be responsible for: (i) providing overall guidance and support to ensure timely Project implementation; and (ii) reviewing final and intermediate outcome indicators. DNP's participation in the Group will help harmonizing Project implementation with justice sector reform activities pursued by other agencies o f the Colombian Government, within the framework o f the National Development Plan. 47 0 MIJ's Proiect Manager: The M I J will appoint a Project manager, with experience, qualifications and terms o f reference (TORS) satisfactory to the Bank, for the purposes o f Subcomponents C.l and C.3 o f the Project, with functions and responsibilities detailed in the Operational Manual which will include, inter alia: (i) liaising with the PCU on all matters required for the effective implementation o f the Project, including reports and other documentation necessary to conduct Project reviews and handling o f financial management and procurement aspects in connection with those Subcomponents; (ii) i i providing timely support to O A C I and coordinating with M I J technical units; and ( i ) GGF to effectively coordinate all o f MIJ's internal administrative matters related to said Subcomponents, including all Project related financial management matters under the responsibility o f GGF. Proiect Coordination Unit: CSJ will maintain a PCU, pursuant to the provisions o f CSJ's Acuerdo No. PSAAO9-6286 o f October 13, 2009, with functions and responsibilities satisfactory to the Bank, including: (i) monitoring the implementation o f the Project and assisting the Working Group in ensuring effective coordination among the staff and institutions responsible for the implementation o f the Project; (ii) preparing and submitting to the Bank the M&E reports in accordance with the timetable, guidelines and terms detailed in the Operational Manual; (iii) close coordination with DEAJ, and the in respective MIJ's technical units, such as OACI-GGF for administrative purposes, carrying out financial management functions, the withdrawal o f loan proceeds, and the procurement o f goods, works, consultant services and non-consultant services required for Project implementation; (iv) reviewing the progress achieved in the implementation 47 Pursuant to the Operational Manual, CSJ will establish and maintain an Advisory Group with appropriate membership, structure, functions and responsibilities. The Advisory Group will comprise representatives o f the private sector, law schools, civil society and academia. The CVs of the Advisory Group members will be reviewed by the Bank, and their selection will follow transparent and competitive procedures. The Advisory Group will: (i) review Project M&E activities; and (ii) provide feedback to the PCU on the progress achieved in Project implementation. 77 o f the Project o n the basis o f the progress reports; (v) identifying any possible obstacle or difficulty affecting or threatening to affect Project implementation, and proposing appropriate solutions; (vi) preparing the AOP for each year specifying the activities to be financed in that year, the implementation schedule and the required financial and human resources. CSJ will allocate part o f the proceeds o f the Loan to maintain the P C U staffed by qualified and experienced technical and clerical staff, in adequate numbers, with the core functions required for the effective implementation o f the Project, all with TORS satisfactory to the Bank. The selection and hiring o f all P C U staff and M I J Project manager shall be subject to the Bank's no objection irrespective o f the source o f financing o f each contract. This P C U will also be responsible for the coordination o f the IADB-financed operation. CSJ's Regional Councils: The CSJ's Regional Councils will have implementation responsibilities at the field level in the Project Cities, under the supervision o f CSJ, with respect to the activities included in subcomponents 1. and 3.2, including: (a) assuring timely and efficient implementation o f the Project; and (b) supervising the technical quality o f the procurement o f goods, works and services financed by the Project. E. Bank supervision 6. The CSJ (for Components 1,2 and 3.2) and the MIJ (for Subcomponents 3.1 and 3.3) will annually review with the Bank, not later than February 15 in each year, starting in 201 1, the project reports and carry out an annual project implementation review to: (i) evaluate progress achieved by the CSJ and the M I J in carrying out their respective activities; (ii) assess progress in the carrying out o f the training activities; (iii) ' assess the adequacy and timeliness o f the budgetary allocations provided by the Borrower to the CSJ and the MIJ for the Project during the previous year, and review the proposed allocations for the upcoming year; (iv) exchange views on progress achieved in the implementation o f the AOP during the previous year, and agree on the proposed activities for the upcoming year; (v) assess and adjust, if necessary, the monitoring indicators; and (vi) identify any current implementation issues and propose solutions to resolve such issues. The CSJ and the M I J will report the results o f the M&E activities to the Working Group and the Advisory Group. F. Results expected 7. The direct execution o f the Project by the CSJ should generate efficiency gains in terms o f reduced processing times, and administrative costs. I t is also expected that the Judiciary will be able to generate more timely and accurate information. The implementation responsibilities should translate into gradual institutional strengthening as capacity is being built up in the CSJ and the MIJ, at the national and regional level. The CSJ will also take into account the recommendations o f the relevant CONPES document about institution building in terms o f standardized processes and continuous M&E. 78 Annex 7: Financial Management and Disbursement Arrangements COLOMBIA: Justice Services Strengthening A. Country Issues 1. The Bank i s engaged with the Government to enhance Project FM across the portfolio and foster the use o f country FM systems on the basis o f institutional capacity building. Significant progresdagreements have been made in recent years: (a) since June 2006, Project interim financial reports (IFRs) have been generated in the nation's integrated financial information system (SIIF); (b) a M O U and TORS for Project audits were agreed among the MHCP, the Contraloria General de la Repziblica (CGR) and the Bank; and (c) a MOU, among MHCP, the DNP and the Bank, was signed to define that executing entities should be directly responsible for Project management. To that effect, this Project's FM arrangements rely on the Judiciary but will be supported by the PCU. B. Financial management assessment 2. A FMA o f the Judiciary was carried out during pre-appraisal and conducted in accordance with OP/BP 10.02 and the Guidelines for the Assessment o f Financial Management Arrangements in World Bank Financed Projects. The assessment concluded that the Judiciary has sufficient capacity to manage Project financial matters and administer loan funds. FM responsibilities w i l l be handled by the PCU, in coordination with the DEAJ and MIJ's Project manager as liaison with OACI-GGF for Subcomponents 3.3 and 3.3. The PCU's main FM responsibilities will include the coordination o f financial and administrative procedures related to Project budgeting, treasury, general accounting and reporting. ' 3. The following action plan was implemented by the Judiciary: (i) prepare the draft Financial Management Chapter o f the O M and submit it to the Bank by June 30, 2009; and (ii) prepare with CGR the specific terms o f reference for the audit and include them into the O M by June 30,2009. 4. The overall FM risk i s assessed as moderate before and after mitigation. C. Implementation Arrangements 5. The Judiciary w i l l be the Project implementing entity. Project implementation responsibilities w i l l be vested in the units directly reporting to the Administrative Chamber o f the CSJ The activities included in Component 1 and Subcomponent 3.2 w i l l be the responsibility o f each Regional Office o f the Judiciary (Consejo Seccional), under CSJ's supervision. M I J will lead the implementation o f Subcomponents 3.1 and 3.3. These arrangements do not have implications for Project ' FM, bearing in mind that funds administration and administrative processes w i l l be handled by the Judiciary that implemented satisfactorily the LIL and the PHRD Grant that supported the preparation o f this Project. 79 D. OrganizatiodStaffing 6. Additional support for Project-related FM will be needed. A FM specialist will be contracted under TORSapproved by the Bank to coordinate overall Project FM issues (Bank and Judiciary), and to support operative tasks. The FM section o f the O M will include detailed FM responsibilities for each member o f the team. Details o f the Project implementation structure and staffing already have been described in Annex 6. The FM responsibilities for major FM processes are described in the table below: Process PCU Budgeting Prepares and records the annual budgets in the cost centers assigned to the Project. Receipts Prepares withdrawal applications and records receipts made into Designated Account (DA) in the Central Bank (BdR) for Loan funds, in conjunction with MHCP. Provides counterpart funding, and ensure their recording in Project accounts. Payments Assigns sources o f funding in accordance with Project financing arrangements. Should instances o f ineligibility be brought up by the reconciliation or audit reports, or by Bank supervision missions, the Judiciary should return the related I amounts to the D A or directly to the Bank. Cash balances I The Judiciary, in conjunction with MHCP, opens designated bank account for Loan funds hthe BdR. The Judiciary prepares-monthlyDA reconciliations. Accounting Maintains Project accounting and information system into SIIF financial system in accordance with local legislation and specific instructions received from MHCP or the Bank. Interim financial reports Prepares reviews and submits to the Bank Project financial reports on semi- annual basis. Annual audited financial Coordinates with the CGR for their review. Subsequent to the audit, the Judiciary statements reviews, distributes, and submits to the Bank the annual audited Project financial E Budget Planning 7. O n the basis o f the AOPs, the Judiciary will update and prepare the annual budgets during Project implementation, and monitor their execution on a monthly basis. This task will be an integral part o f the entity's own budget cycle management and processed through its budgetary system integrated into SIIF. MIJ's Project Manager will provide the inputs required for budget planning by MIJ's O A C I and GGF. The Bank will review the annual operational and procurement plans. 80 F. Internal controls 8. The internal control system o f the Project will incorporate the policies and procedures established by the Internal Control Office (ICO) o f the Judiciary. 9. The procedures o f the Project internal control system will ensure that: (a) procurement processes follow the procedures established in the Loan Agreement and the OM; (b) document files are reliable and functional; (c) the Project i s executed in accordance with administrative processes, and legally and fiscally valid norms; (d) the financial and accounting system supplies information according to established accounting norms, i s accessible to users, supplies adequate information for audits, and provides reliable and suitable information; (e) the financial archives are periodically and effectively kept and secure systems are used to control the deposits and disbursement o f funds; and (f) the Judiciary has established the procedures for planning and monitoring its activities, including procurement o f goods and works, and selection o f consultants, and the projection o f cash flow o f loan and local counterpart funds. 10. The Judiciary will adopt the procedures described in the OM, which will be audited by the CGR audit and reviewed through regular Bank supervision. G. Written procedures 11. Project financial procedures will be described in the O M which will define the roles and responsibilities o f the Project FM team. The draft O M will be submitted to the Bank before negotiations and will include, among other financial procedures, the: (a) accounting policies and procedures including accounting basis; (b) cash flow charts with detailed processes; (c) reporting requirements based on the agreements reached between the M H C P and the Bank in September 2006; (d) internal control procedures including criteria and procedures for processing payments; (e) records management, and (f) audit arrangements and TORS. H. Accounting and information systems 12. Project accounting will be integrated into the each entity's accounting system SIIF which is an online, integrated administrative and financial system, where budgeting, accounting and treasury modules are connected. The system is implemented by the Government in all o f the national agencies. SIIF performance has been satisfactory and has been monitored under the PHRD Grant implemented by the Judiciary and IDF/JSDF Grants implemented by MIJ. The accounting for this Project will be defined through the "on line internal assignation" (cost center) that will be created once the Loan Agreement is signed. The Judiciary has already implemented this accounting procedure for the PHRD Grant, and M I J for the IDF/JSDF Grants. I. Fundsflow and cash management 13. The Bank will disburse the proceeds o f the loan into a Designated Account in USDs (United States Dollars) in the name o f the Project held by the National Treasury in the BdR. If the Designated Account i s open in USDs, the Judiciary will request the Treasury to convert the deposits into COPS in the BdR and to transfer them directly to the Project accounts o f providers 81 o f goods and services as expenditures are accrued. J. Financia1 management reporting 14. The Judiciary will prepare IFRs in conformity with instructions issued by the M H C P and the Bank in September 2006. The IFRs generated in SIIF include: (a) report o f payments from the DA held in the Central Bank; (b) report o f commitments; (c) balance sheet; (d) cumulative investment statement (with actual and budgeted figures) and cash balances; and (f) notes to the financial statements. 15. In addition, the annual financial statements will include: . . DA reconciliation and the statement o f the DA. The Accounting Policies Adopted and Explanatory Notes. 16. Templates for the IFRs should be included in the Financial Management Chapter o f the OM. 17. IFRs will be sent to the Bank semiannually within 45 days after the end o f each calendar semi-annual period (Le. by August 15 and February 15). The IFRs will serve as a basis for the annual audit o f the financial statements which in turn will also include Project management's assertion that loan funds were used in accordance with the intended purposes as specified in,the Loan Agreement. The annual financial statements, once audited, will be submitted to the Bank not later than 6 months after the end o f each calendar year. The supporting documentation o f the financial statements will be maintained by the Judiciary and made easily accessible to Bank supervision missions and to the external auditors. K. External audit 18. The Judiciary i s audited by the CGR. The opinion reported by the CGR as o f December 31, 2007 was a Qualified Exception due to issues that amount to COL$20,073 million, which i s equivalent to 10.28 percent o f the core entity total asset level. This figure corresponds to differences presented in the fixed assets account because o f the registration o f fixed assets in the central level accounts rather than in the sectional ones, as well as asset revaluations not supported by appraisals. However, the entity informed that the adjustments were already carried out in 2008 based on the updated appraisals. These issues do not have any implications for Project FM per se. 19. A s regards, the PHRD Grant audit report as o f December 3 1,2007, included a qualified opinion (with exceptions) on the Project Financial Statements due to the following: (i) underestimation o f the Banking account records and o f the net/gross balances in C O L $ l 1.2 million and COL$33.8 million for the years 2006 and 2007, respectively. This is due to the fact that the entity did not record in i t s accounting records neither the grant resources deposited in the Bancafe Miami U Dollars bank account, nor the financial yield, commission and administration S expenses. However, the auditor informed that the adjustments were made in July 2008; and (ii) the Bank reconciliation process i s carried out from the manual books prepared by the Treasury 82 division, and not from the SIIF Nation system, generating a monthly difference o f COL$43.5 million accumulated in the 2007. However, the auditor pointed out that issue was corrected in December 2007. The assessment o f the internal control structure by the CGR concluded that the weaknesses identified in the qualified opinion had to be addressed. These aspects will be taken into account in the FM sections o f the O M and will be closely monitored by the Judiciary during Project implementation t o prevent their recurrence. 20. For the proposed Project, a specific audit is required: the Project annual financial statements will be audited each year by the CGR, under terms and conditions satisfactory t o the Bank. Audit Report Due Date I year L. Financial management risk 2 1. The Risk Assessment Matrix in the Table below presents the items o f potential risk for the program from a financial management standpoint. ~ ~~ ~ Risk Risk Risk Mitigation Measures Incorporated Risk After Assessment into Project Design Mitigation Inherent Risk Country level: Moderate The Bank i s engaged with the GOC to Moderate enhance Project F M across the portfolio and foster the use of country F M systems on the basis of institutional capacity building. Entity level: Moderate (i)Annual financial statements and eligibility Moderate of Project expenditures would be audited - Funds may not be each year by the CGR; (ii) follow up through used efficiently and improvement plans agreed upon with the economically and for CGR; (iii) IFRs will be sent to the Bank purposes intended. semiannually; (iv) Bank ProjectffM supervision will be carried out at least once per year; and (v) Project accounting will be integrated into the entity's accounting system SIIF which i s an online, integrated administrative and financial system. Project level Moderate Risk mitigation measures will include Moderate customization of accountability reports, external audits and Bank ProjectffM supervision. Overall Inherent Moderate Moderate Risk Control Risk Budgeting Moderate The Judiciary will prepare the budget on an Moderate annual basis. T h i s task will be an integral part o f the entity's own budget cycle management and processed through i t s budgetary system integrated into SIIF. The Bank will review the annual operational and procurement plans. 83 I Accounting Risk Risk Assessment Moderate Risk Mitigation Measures Incorporated - into Project Design The Judiciary will adopt the O M procedures, Risk After Mitigation Moderate which will be audited b y the CGR audit and reviewed through regular Bank supervision. Internal Controls Substantial The Judiciary will adopt the O M procedures, Moderate which will be audited by the CGR audit and - See second reviewed through regular Bank supervision. paragraph o f the External Audit section o f this annex. Funds Flow Moderate (i)Funds will flows directly from the World Moderate Bank to the designated account in the BdR; and (ii) Should instances o f ineligibility be brought up by audit reports or by Bank supervision, the related amounts will be returned by the Judiciary to the D A or directlv to the Bank. Moderate IFRs will be generated in the entity's Moderate integrated financial systems SIIF. 7 Auditing Moderate Annual financial statements and eligibility o f Project expenditures would be audited each year by CGR. Model TORShave been agreed with the CGR. Training and TA i s being Moderate provided by the Bank. Overall Control Risk Moderate Moderate The FA4 inherent risk i s de led as that whic arises from the environment in which the Proiect i s situated. The FA4 control risk i s defined as the risk that the Project's FM system i s inadequate tolensure Project funds are used economically and efficiently and for the purpose intended. 22. The implementation o f FM arrangements described in this Annex (and to be detailed in the OM) intend to maintain the overall FM control risk and the residual FM risk rating, defined as the combination o f the Project's inherent and control risks as mitigated by the client control frameworks and Bank supervision effort, at an overall moderate level before and after mitigation. M. Disbursement arrangements 23. Eligible expenditures will be recognized upon payment to consultants and suppliers. Should instances o f ineligibility be brought up by audit reports or by Bank supervision, the related amounts will be returned by the Judiciary to the DA or directly to the Bank. N. Disbursement Mechanisms and Documentation 24. The Project will have access to funds advanced by the Bank to a segregated DA in USDs, located in the BdR, for processing disbursements for eligible expenditures under Project activities. Funds deposited into the DA as advances will follow the Bank's disbursement operating policies and procedures established in the Disbursement Letter. Other disbursement methods that can be used will be Direct Payments and Reimbursements. 25. An authorized ceiling, i.e. the maximum amount that may be on deposit pending the provision to the Bank o f documentation evidencing the use o f advanced funds made into the DA 84 will be set at US$l,OOO,OOO. The frequency for reporting eligible expenditures paid from the DA will be monthly. 26. Withdrawal applications will be supported by Records/Summary Sheets/Statement o f Expenditures (SOEs), as will be specified in the Disbursement Letter. The Judiciary will be responsible for preparing and submitting withdrawal applications to the Bank through MHCP in accordance with established procedures. All supporting documentation of withdrawal applications and SOEs should be retained at its central offices and be available for review by the Bank supervision missions and external auditors. 0. Financial Management Action Plan ~ Action Responsible Completion Date48 Prepare the Draft o f the Financial Management Chapter Judiciary December 19,2008 o f O M and submit it to the Bank. Prepare specific audit terms o f reference with the CGR Judiciary December 15,2008 and include them into the O M P. Bank FM Supervision Plan 27. The FM team will review the semi-annual IFRs and annual audit reports, and will carry out at least one supervisionmission per year. Q. Disbursementstable Amount o f the Percentage of Loan Expenditures to be Allocated financed (exDressed in inclusive o f Taxes USD) (1) Goods, Works Consultants' Services, Non-Consultant Services, 16,290,000 100% Training and Operating Costs for Parts A, B, C.2 and D o f the Project (2) Goods, Consultants' Services, Non-Consultant Services, 820,000 100% Training and Operating Costs under Parts C. 1 and C.3 o f the Project (3) Unallocated 2,890,000 100% TOTAI, AMOIJNT zn.nnn.nnn 48. This column denotes the expected date o f completion for each action. I t does not give indication o f legal conditions. 85 Annex 8: Procurement Arrangements COLOMBIA: Justice Services Strengthening A. General 1. Procurement for the proposed Project would be carried out in accordance with the World Bank's "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated M a y 2004, revised October 2006; and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated M a y 2004, revised October 2006, and the provisions o f the Loan Agreement. The various items under different expenditure categories are broadly described below. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. 2. Procurement o f Works: Minor civil works will be procured under this Project, including: office space reorganization in selected civil, labor and family courts for the installation o f ICT, office reorganization for the installation o f I C T for the despachos comisorios module, refurbishment o f EJRLB videoconference room, and reorganization o f user kiosks for the installation o f ICT. Procurement will be done using the current harmonized Standard Bidding Documents (SBD) for all National Competitive Bidding (NCB) processes (for contracts estimated to cost above $100,000 equivalent). Shopping (Invitation to Quote) documents for minor works must be previously agreed with the Bank. 3. Procurement o f Goods: Goods procured under this Project will include information technology (hardware and software); communications equipment; storage and office furniture; other equipment needed for courtroom operation, including training equipment. Procurement will be done using the harmonized SBD for all International Competitive Bidding (ICB) and N C B tenders. For procurement where a harmonized document i s not ready, Bank Standard Bidding Documents will be used. Shopping (Invitation to Quote) documents must be previously agreed with the Bank. Procurement o f leased assets will be carried out in accordance with appropriate procurement procedures as established in the "Guidance on N e w Framework for Eligibility o f Expenditures" dated June 7,2004. 4. Procurement o f non-consulting services: Archive digitalization and information storage services must be procured using harmonized or Bank standard documents. 5. Selection o f Consultants: The Loan will also finance feasibility studies; monitoring and evaluation; database development sefvices; technical assistance in reengineering work organization and processes; other studies related to the modernization o f the justice sector; awareness campaigns; and economic and physical efficiency studies. Short lists o f consultants for services estimated to cost less than $500,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. For technical assistance purposes, individual consultants may be hired as per Section V o f the Bank's Consultants Guidelines. Universities, government research 86 institutions, public training institutions, Non-Governmental Organizations (NGOs), or specialized organizations may be engaged as consultants during Project implementation. 6. Operating Costs: Operating Costs will include the cost o f the key Project staff as agreed with the Bank; travel related expenses for personnel commissioned under the Project; expenses related to training and workshops; office consumables; office rent, communications and utilities; office equipment; fuel and vehicle operation and maintenance; purchase o f scientific publications and materials; insurance and banking costs; Internet connectivity; other office-related costs incurred should the Project not exist. The P C U may use the Judiciary's internal procedures, satisfactory to the Bank, t o procure the above operating costs. 7. The procurement procedures, harmonized documents and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are included in the O M . B. Assessment o f the agency's capacity to implement procurement 8. Procurement activities will be carried out by the CSJ through the P C U established for this purpose. The P C U will be staffed by a Project Coordinator and a Technical Coordinator with 7- year experience in Bank-funded procurement, and other consultants. A procurement assistant will j o i n the P C U by the start o f Project implementation to deal with day-to-day procurement activities. This P C U will also be responsible for the coordination o f the IADB-financed operation. 9. An assessment o f the capacity o f the P C U to implement procurement actions for the Project has been carried out by Jose M. Martinez (Procurement Accredited Staff-PAS) in M a y o f 2008, later updated in July 2008, and will be further updated during appraisalhegotiations. The assessment reviewed the organizational structure for implementing the Project and the interaction between the Project's staff responsible for procurement and the Judiciary's relevant central unit for administration and finance (DEAJ). However, any substitution regarding the evaluated staff may reverse this assessment, and would implicate the need o f reassessing the real capacity. 10. The key issues and risks concerning procurement for implementation o f the Project have been identified and include: (a) potential delays and roadblocks in procurement implementation due to misunderstanding o f Bank Guidelines within the Judiciary; and (b) a potential conflict o f control and influence by different units o f the Judiciary regarding the P C U and Project activities. The corrective measures agreed are: (i) organize and conduct a special seminar or workshop (by the start o f Project implementation) for the Judiciary's staff and hierarchy to familiarize them with Bank Procurement and Consultants Guidelines, highlighting similarities and differences between such Guidelines and Colombian Procurement Law; (ii) ensure the hiring o f a procurement assistant to help expedite procurement processes; (iii) ensure transparency o f procurement operations through a well-prepared Operations Manual; (iv) making procurement results public; and (v) ensure constant technical support to the P C U and regular communications with the Bank. 87 11. The overall Project risk for procurement is MODERATE, provided that the PCU's procurement capacity i s kept and the above measures are implemented. C. Procurement Plan 12. The Borrower has developed a Procurement Plan for Project implementation which provides the basis for the procurement methods. This plan was agreed between the Borrower and the Bank during negotiations and will be available at the Judiciary (Consejo Superior de l a Judicatura, Unidad Coordinadora de Proyecto, Carrera 8 No. 13-50, Piso 6, Bogota, Colombia). I t will also be available in the Project's database and in the Bank's external website. The Procurement Plan will be updated in agreement with the P C U annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. 13. CSJ and M I J will: (a) promptly following the effectiveness o f the Loan Agreement, supply the Bank's Procurement Plan Implementation System (SEPA) with the information contained in the initial Procurement Plan; and (b) periodically update the Procurement Plan at least once a year, or as required by the Bank, to reflect the actual Project implementation needs, and supply the SEPA with the information contained in the updated Procurement Plan. D. Frequency o f Procurement Supervision 14. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment o f the Judiciary has recommended annual supervision missions to visit the field to carry out post review o f procurement actions. E. Details o f the Procurement Arrangements InvolvingInternational Competition 1. Goods, Works, and Non ConsultingServices (a) List o f contract packages to be procured following I C B and direct contracting: 2 Wiring and 500,000 ICB N/A Yes Prior Quarter lst audio systems 2010 3 System for 3 12,000 ICB NIA Yes Prior 2ndQuarter accessing to 2010 Internet 4 Computer 1,932,509 ICB N/A Yes Prior 2"d Quarter Equipment 2010 5 Audio Systems 506,618 ICB N/A Yes Prior 2ndQuarter - 88 6 I 7 8 9 I c 6 I I Technological I 1591,458 I I ICB I I NIA Prior I support 2010 7 I Archive I 502,152 I ICB Yes Prior 3'd Quarter inventory and organization I I2O10 I (b) I C B contracts estimated to cost above $300,000 (goods) and above $5,000,000 (civil works) per contract, and all direct contracting, will be subject to prior review by the Bank. 2. ConsultingServices (a) List o f consulting assignments with short-list o f international f i r m s . (b) Consultancy services estimated t o cost above $300,000 per contract and single source selection o f consultants (firms) will be subject to prior review by the Bank. (c) Short lists composed entirely o f national consultants: Short lists o f consultants for services estimated to cost less than $500,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. Contracts subject to prior review by the Bank will be marked so in the Procurement Plan. 89 Annex 9: Economic and Financial Analysis COLOMBIA: Justice Services Strengthening A. Economic Benefits 1. Through subcomponent 1.2, the Project will help to mitigate the risk o f corruption within the Judiciary by providing the powerful deterrents o f permanent transparency and accountability mechanisms, thereby also contributing to enhanced governance in Colombia. 2. The improved delivery o f formal justice services will also help lower the transactions costs o f Doing Business in Colombia, by reducing the time and cost o f contract enforcement associated with the eliminated backlog and reduced delays. Increased court performance coupled with reliable legal information (developed under subcomponent 1.1 and the IADB-financed project) are expected to result in the country's laws and regulations being interpreted and enforced in a more predictable and uniform manner by the Judiciary. Recognition and enforcement o f urouerty rights should also be expedited. 3. The expected enhancement o f business confidence should contribute to the overall investment climate, indirectly encouraging participants in the large informal economy to move closer to operating within the framework o f regulated economic activity, which could potentially increase Government revenues. B. Fiscal Impact 4. Justice sector investments are not subject t o conventional financial analysis since a substantial part o f their outcomes are difficult or impossible to measure, and are more related to critical social values like legitimacy of, and confidence in, State institutions. 5. The fiscal impact o f the Project is relatively modest and sustainable. In the short run, it requires countemart financing which can be covered by the Judiciary's anticipated appropriations during the life o f the Project. Debt service on the proposed IBRD Loan will be comparatively lower and extended over a longer period than alternative sources o f financing. The Judiciary will undertake a set o f complementary investments with IADB financing. The smaller IADB loan will also require relatively minor debt service obligations. 6. In the medium term, efficiency gains in courtroom operations and overall management o f the Judiciary will allow the allocation o f resources in a more cost-effective manner, possibly permitting reductions in administrative expenses. Greater automation o f internal processes will allow more cases to be resolved in less time. This, together with the anticipated improvements in the Judiciary's personnel practices could reduce budget needs, as well as the promotion o f ADR mechanisms, and greater rationalization in the allocation o f personnel and other resources according to the justice services supply map and the unmet basic justice services needs survey. 90 Annex 10: Safeguard Policy Issues COLOMBIA: Justice Services Strengthening 1. None o f the activities included in this Project will trigger any o f the Bank's safeguard policies. The environmental screening category o f the Project i s C (no adverse environmental impact). 2. W h i l e the Project does not have any negative social impact, it is expected to contribute to greater social accountability by improving the justice sector M&E system, promoting a greater use o f M&E results for policy developmenthmplementation, and social control functions, and strengthening the information base o f the Judiciary to achieve greater credibility. 3. The proposed Project will address the priority justice sector issues defined in the National Development Plan, and the Judiciary Strategic Plan, including the development o f a few innovative approaches to enhancing access to justice through formal and non-formal mechanisms (decentralization, conciliation). 4. A s in the case o f the LIL, the Project will only work in the country's major urban centers (including mid-size cities for the new conciliation centers) where most o f justice services demand i s located. For non-urban areas, the Government (with the assistance o f other donors like U S A I D and EU) has developed separate programs that include dispute resolution components targeted to vulnerable groups in those areas, like indigenous peoples or Afro-Colombians. 5. The possibility o f addressing indigenous people's justice issues was considered. However, the final decision was not to involve the Bank in this area because other donors (the EU in particular) are very active with a significant amount o f financing. Moreover, as the Project setting i s urban indigenous groups are highly unlikely to be affected. Nevertheless, a social assessment was undertaken during Project preparation that included attention to, and documentation of, indigenous groups' preferences and priorities along with other relevant stakeholder groups (poor, women, youth). The consultation process also included representatives o f indigenous groups. The assessment was conducted between April - September 2008 by local experts. The social assessment process has provided sufficient information to make a judgment regarding the non-applicability o f O P B P 4.10. 91 Annex 11: Project Processing COLOMBIA: Justice Services Strengthening Planned Actual PCN review 05/01/2006 11/08/2006 Initial P I D to PIC 01/30/2007 04/30/2007 Initial ISDS to PIC 01/30/2007 04/30/2007 Appraisal 12/15/2008 0911512009 Negotiations 0111512009 11/04/2009 BoardRVP approval 0311512009 12/08/2009 Planned date o f effectiveness 04/01/2009 0 111512009 Planned date o f mid-tern review 06/30/2012 0211512012 Planned closing date 12/31/2014 1213 1/2013 The institutions responsible for the preparation o f the Project were the Judiciary, MIJ and DNP. Bank staff and consultants who worked o n the Project included: Name Title Unit David F. Varela Senior Public Sector Management Specialist LCSPS (Task Team Leader) Lubomira Beardsley Senior Counsel (Peer Reviewer) LEGJR Richard Messick Senior Public Sector Management Specialist PRMPS (Peer Reviewer) Teresa Genta-Fons Lead Counsel LEGLA JosB Martinez Senior Procurement Advisor LCSPT Jose Janeiro Finance Officer LOADM Jeanette EstupiiiSin Senior Financial Management Specialist LCSFM JosB-Manuel Bassat Senior Communication Specialist EXTCD Maria Gonzitlez de Asis Senior Public Sector Specialist WBIPS Alonso Zarzar Senior Social Development Specialist LCSEO Henry Forero Ramirez Senior Information Officer ISGEG David Kaplan Private Sector Development Specialist GIAEA Javier Madalengoitia Public Sector Management Analyst LCSPS Linn Hammergren Justice Sector Reform Consultant LCSPS &car Fldrez Justice Sector Reform Consultant LCSPS Javier Said Justice Sector Reform Consultant LCSPS German Vallejo Justice Sector Reform Consultant LCSPS Angela Maria Sorzano Justice Sector Reform Consultant LCSPS Jorge Enrique Rojas Justice Sector Reform Consultant LCSPS Hermann Nissembaum Operations Consultant LCSPS Karen Abudinen Operations Consultant LCSPS Carmen Machicado Public Sector Management Analyst LCSPS Carolina Renddn Public Sector Management Specialist LCSPS Patricia E. Mendez Language Program Assistant LCSPS Cristina Cifuentes Team Assistant LCCCO 92 Bank Funds Spent to Date on Project Preparation (US$) Bank resources $695,370 TWst funds PHRD TF-53760 $17,563 Total 712.933 Estimated Supervision Costs (US$) Estimated annual suDervision costs $400.000 93 Annex 12: Documents in the Project File COLOMBIA: Justice Services Strengthening A. Project Implementation Plan Procurement Plan Operations Manual B. Bank Staff Assessments Financial Management Assessment Procurement Capacity Assessment QAT Environmental and Social Comments on the PCN, P A D and associated Integrated Safeguards Data Sheet (ISDS) Colombia Country Procurement Assessment Report, July 28,2005 (Spanish), March 1,2005 (English) Colombia Country Financial Accountability Assessment, April 23,2005 (Spanish), April 13, 2005 (English) Country Partnership Strategy for the Republic o f Colombia for the Period FYO8-FY 11, March 4, 2008 Republic o f Colombia, Policy Notes, 2007 C. Other 1. Internal documents Project Concept Note Review Meeting Minutes: PCN, QER, Decision and Negotiations Peer reviewer and other reviewer comments on Project cycle documents Public Information Document Component reports prepared by World Bank staff and consultants Aide Memoires 2. Final reports o f consultancies financed by a related PHRD Grant e Universidad Externado de Colombia, Facultad de Administracidn de Empresas. "Judicial Conflict Resolution Improvement Project - Results Evaluation" (Proyecto de Solucidn Judicial de Conflictos - Evaluacidn de Resultados). Bogota, Colombia. June 2008. e Grupo 13 Comunicacidn y Estrategia. "Comprehensive Communications Strategy for the Justice Sector" (Estrategia Integral de Comunicaciones Sector Justicia). Bogota, Colombia. June 2008. a Corporacidn Excelencia en la Justicia - CEJ. "Baseline o f Judicial Congestion in Ordinary Courts" (Linea de Base de la Congestidn Judicial en la Jurisdiccidn Ordinaria). Bogota, Colombia. December 2007. 94 Corporacion Excelencia e n la Justicia - CEJ. "Status o f the Inter-institutional Coordination for the Investigation, Processing and Sanction o f Acts o f Corruption - Executive Summary" (Estado de la Coordinacidn Interinstitucional para la Investigacidn, Procesamiento y Sancidn de Actos de Corrupcidn"). Bogota, Colombia. May 2008. Fundacion para la Education Superior y e l Desarrollo - FEDESARROLLO. "Development o f a Methodology for the Identification o f Unsatisfied Dispute Resolution Needs" (Desarrollo de una metodologia para la identijkacidn de Necesidades Insatisfechas de Resolucidn de Confictos). Bogota, Colombia. June 2008. Centro de Investigacih y Desarrollo Empresarial - CIDEM de la Universidad del Rosario. "Diagnosis, Strategy and Indicators o f the Human, Financial and Physical Resource Management Unit o f the Justice Sector" (Diagndstico, Estrategias e Indicadores de la Gerencia de Recursos Humanos, Financieros y Fisicos del Sector Justicia). Bogota, Colombia. June 2008. Facultad de Derecho de l a Universidad del Rosario. "Baseline o f Judicial Congestion in Administrative Courts" (Linea de Base de la Congestidn Judicial en la Jurisdiccidn Administrativa). Bogota, Colombia. June 2008. Bank publications Doing Business 2008 Colombia, A Project Benchmarking the Regulatory Cost o f Doing Business in 178 Economies, Doing Business Project, World Bank Group. 4. Government publications Plan Nacional de Desarrollo 2006 - 2010 "Estado Comunitario: desarrollo para todos ". Capitulo 6: Un mejor Estado a1 servicio de 10s ciudadanos. http://www.dnp.gov. colpaainas detalle. aspx?idp=906. Colombia Segundo Centenario: 2019. Capitulo 6: Un estado ejkiente a sewicio de 10s 1 ciudadanos. Editorial Planeta, Bogota, Colombia. June 2005. 95 Annex 13: Statement o f Loans and Credits COLOMBIA: Justice Services Strengthening Difference between expected and actual Original Amount in US$ Millions disbursements ProjectID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev'd ~ ~~ P101277 2010 CO-(AFII) Peace and Development 7.81 0.00 0.00 0.00 0.00 7.81 0.00 0.00 P114325 2010 CO (AFII) Integrated 300.00 0.00 0.00 0.00 0.00 300.00 0.00 0.00 P116088 2010 CO-Finance and Private Sector Dev 300.00 0.00 0.00 0.00 0.00 300.00 0.00 0.00 P101279 2010 CO Solid Waste Management Progran 20.00 0.00 0.00 0.00 0.00 20.00 0.00 0.00 Projec P101211 2009 CO Second Social Safety Net Project 636.50 0.00 0.00 0.00 0.00 469.00 306.03 0.00 P113084 2009 CO Disaster Risk Mgmt CAT DDO 150.00 0.00 0.00 0.00 0.00 150.00 0.00 0.00 PO99139 2009 CO Strength. Public Info, M&E for 8.50 0.00 0.00 0.00 0.00 8.30 0.50 0.00 RMgmt. PO82908 2008 CO (APL2) Rural Education APL I1 40.00 0.00 0.00 0.00 0.00 39.00 9.01 0.00 P104567 2008 CO-Second Rural Productive Partnerships 30.00 0.00 0.00 0.00 0.00 22.24 -1.26 0.00 P105164 2008 CO-(APL)Second Student Loan Support 300.00 0.00 0.00 0.00 0.00 207.85 57.85 0.00 Proj PO52608 2008 CO- Antioquia Secondary Education 20.00 0.00 0.00 0.00 0.00 19.00 5.60 0.00 Projec PO96965 2007 CO (APLI) La Guajira Water and Sanit. 90.00 0.00 0.00 0.00 0.00 90.00 50.00 0.00 PO85727 2006 CO-(APLZ) Disaster Vulnerability Reduct 80.00 0.00 0.00 0.00 0.00 73.91 70.01 70.01 PO82520 2006 CO Sustainable Development Inv Project 7.00 0.00 0.00 0.00 0.00 0.54 0.52 0.00 PO82429 2005 CO-(APL 1)Disaster 260.00 0.00 0.00 0.00 150.00 42.68 19.26 0.00 VulnerabilityReduction PO82167 2005 CO Agricultural Transition Project 30.00 0.00 0.00 0.00 0.00 1.57 -1.13 0.00 PO51306 2004 CO 1st APL PEACE AND DEV 37.81 0.00 0.00 0.00 0.00 7.81 0.00 0.00 PO82466 2004 CO IntegratedM s Trmsit Systems as 757.00 0.00 0.00 0.00 0.06 300.00 -206.94 0.00 PO74726 2003 CO Bogota Urban Services Project 130.00 0.00 0.00 0.00 0.00 33.48 3.48 15.23 Total 3,204.62 0.00 0.00 0.00 150.06 2,093.19 312.93 85.24 96 COUNTRY STATEMENT OF IFC's Held and Disbursed Portfolio In Millions o f U S Dollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2003 AAA 18.24 0.00 0.00 0.00 18.24 0.00 0.00 0.00 2002 BCSC 0.00 7.00 0.00 0.00 0.00 7.00 0.00 0.00 2006 BCSC 0.00 12.78 0.00 0.00 0.00 12.78 0.00 0.00 2001 CHMC 23.92 10.09 0.91 0.00 4.05 5.21 0.91 0.00 2004 Cartones America 19.86 0.00 0.00 0.00 19.86 0.00 0.00 0.00 2004 Carvajal S.A. 35.00 0.00 35.00 0.00 15.00 0.00 26.73 0.00 2006 Carvajal SA. 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 Cementos Caribe 2.02 0.00 0.00 2.59 2.02 0.00 0.00 2.59 2003 DAVIVIENDA I 19.27 10.00 0.00 0.00 19.27 8.80 0.00 0.00 2006 DAVIVIENDA I 0.00 15.00 35.00 0.00 0.00 13.20 0.00 0.00 2006 Fundacion SOC... 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 2006 Interbolsa 14.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 Inversura 0.00 15.00 0.00 0.00 0.00 15.00 0.00 0.00 2002 Omimex Oil 0.00 0.00 5.00 0.00 0.00 0.00 5.00 0.00 2006 Petrotesting 0.00 15.00 0.00 0.00 0.00 9.00 0.00 0.00 2006 Promigas 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 Proteccion 0.00 10.00 0.00 0.00 0.00 10.00 0.00 0.00 SIE 0.00 0.20 0.00 0.00 0.00 0.20 0.00 0.00 2002 SIG 42.00 0.00 0.00 0.00 42.00 0.00 0.00 0.00 WWB Cali 8.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . _ WWB Pooavan 5.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 288.35 95.07 125.91 2.59 120.44 81.25 32.64 2.59 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2001 CHMC 0.00 0.02 0.00 0.00 2004 Bancafe 0.00 0.02 0.00 0.00 2006 Interbolsa 0.00 0.01 0.00 0.00 2006 Petrotesting 0.02 0.00 0.00 0.00 2006 Promigas Corp 0.00 0.00 0.00 0.04 2006 WWB Facility COL 0.02 0.00 0.00 0.00 Total pending commitment: 0.04 0.05 0.00 0.04 97 Annex 14: Country at a Glance COLOMBIA: Justice Services Strengthening Latin Lower- POVERTY and SOCIAL America middle- Colombia 8 Carib. income Developmentdimon@ 2008 P opuiatio n. mid-year (millions) 44.5 561 3,435 GNI per capita (Atlas method, US$) 4,670 5,801 1,905 Life expectancy GNI (Atlasmethod, US$ billions) 207.9 3,252 6.543 Average annual growth, 2002-08 Population (%) 1.3 13 11 Laborforce (%) 17 2.3 15 GN I Gross per primary M o s t r e c e n t e s t i m a t e ( l a t e s t year available, 2 0 0 2 - 0 8 ) capita nrollment P 0 verty (%of populatio n belo wnatio nalpo vertyline) 46 Urban population (%oftotalpopulation) 74 78 42 Life expectancy at birth (years) 73 73 69 Infant mortality (per 10001ive births) 57 22 38 Child malnutrition (%ofchildren under5) 5 4 25 Access t o improved water source Access t o an improvedwatersource (%ofpopulation) 93 91 88 Literacy (%of population age 1 9 5 92 91 83 - Gross primary enrollment (%of school-agepopulation) Male Female I73 W I5 18 PO 1 1 % 11 12 M9 1 - Colombia Lower-middle-income grap KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1988 1998 2007 2008 GDP (US$ billions) 39.2 98.5 207.8 243.8 Gross capital formationlGDP 20.6 29.7 24.3 24.7 Exports of goods and services1GDP 73.3 15.0 73.9 18.2 Trade Gross domestic savingslGDP 23.1 13.8 20.2 2 12 Gross national savingslGDP 21.5 13.5 18.9 29.3 Current account balancelGDP -0.5 -4.9 -2 8 -2.8 Interest paymentslGDP 3.9 2.0 15 Total debtlGDP 43.4 33.6 22.2 Total debt servicelexports 44.2 310 213 73.2 Present value of debtlGDP Present value o f debtlexports Indebtedness 1988-98 1998-08 2007 2008 2008-12 (average annualgrowth) GDP GDP percapita 3.6 1.9 4.1 2.6 7.5 6.2 2.5 13 2.9 17 - - Colombia Lower-middle-income gmp Exports o f goods and services 6.7 5.1 114 7.0 6.7 STRUCTURE o f the ECONOMY (%of GDP) 1988 1998 2007 2008 I Growth o f capital and GDP ( O h ) I I 25 Agriculture I74 14.3 8.9 8.6 20 Industry 37 6 28.4 35.5 36.5 15 Manufacturing 219 25.1 7.6 75.0 10 Services 45.0 57.4 55.6 54.9 5 0 Household final consumption expenditure 68.3 65.3 63.3 62.5 General gov't final consumption expenditure 8.6 20.8 B.6 16.3 Imports of goods and services 13.9 217 --GCF -GDP 20.9 2 10 1988-98 1998-08 2o08 ' Growthofexportsandimpo*(%) (average annual gm wth) Agriculture -18 2.2 3.9 2.7 2o Industry 3.0 3.1 8.1 07 '5 Manufacturing -13 4.1 9.5 -18 10 Services 4.9- 26.3 7.3 3.3 5 Household final consumption expenditure 3.2 3.6 7.6 2.3 General gov't final consumption expenditure 9.6 3.8 4.5 13 Gross capital formation 7.3 9.4 a.7 8.8 ,\* *- ', * Exporls --O- Imports Imports o f goods and services 15.0 8.2 13.9 9.8 I 98 PRICES and GOVERNMENT FINANCE 1988 1998 2007 2008 Inflation (%) D o m e s t i c prices (%change) loT Consumer prices 28.1 16.7 5.7 7.0 Implicit GDP deflator 27.8 14.8 4.8 8.3 G o v e r n m e n t finance (%of GDP, includes current grants) Current revenue 216 27.7 25.7 25.3 03 04 05 06 07 08 Current budget balance Overall surplusldeficit 4.7 -2.2 4.3 -4.0 4.1 -0.8 3.5 -0.3 -- GDP deflator 9 - -CPI TRADE I 1988 1998 2007 2008 Export and import levels (US$ mill.) (US$ millions) Total exports (fob) 5,439 0,866 29,991 37,626 45.000 * 'Coffee 1641 1893 1714 1663 40,000 35,000 Petroleum 967 2.329 7,318 P.20 30,000 Manufactures 104 4,00 11955 P,879 25,000 Total imports (cif) 5,005 14,633 32,697 39,669 20,000 Food 246 1693 2.8s 3,406 15,000 10,000 Fuel and energy 78 305 906 1,80 5.000 Capital goods 1,744 5,575 11931 14,393 0 I Export price index (2OOO=WO) 151 168 02 03 04 05 06 07 08 Import price index (2OOO=WO) PO P5 OExpollr =Imports Terms of trade (2000=WO) P5 04 BALANCE o f PAYMENTS (US$ millions) 1988 1998 2007 2008 1 Current account balance to GDP (%) I Exports of goods and services 6,761 P.685 34,213 42,579 Imports of goods and services 6,364 7,033 37,416 44,743 Resource balance 397 4.146 -3.203 -2,165 Net income -1576 -1682 -7,847 -0.063 Net current transfers 964 569 5,231 5.514 Current account balance -215 -4,856 -5,819-6, 713 Financing items (net) -144 6,248 105 4,075 Changes in net reserves 359 -1390 4,714 2,636 Memo: Reserves including gold (US$ millions) 6,740 20,952 23,670 Conversion rate (DEC, local/US$) 299.2 1426.0 2,078.3 1967.7 E X T E R N A L D E B T a n d RESOURCE F L O W S 1988 1998 2007 2008 Compositionof 2007 deM(US$ mill.) (US$ millions) Total debt outstanding and disbursed 8,016 33,079 46,053 IBRD 3,898 1740 4,756 IDA 16 9 2 2 G. 5.161 A 4.756 Total debt service 3,298 4,526 8,847 7,941 IBRD 665 347 688 IDA 1 1 1 Compositionof net resourceflows Official grants 36 64 Official creditors 334 78 224 Private creditors 292 I75 3,268 Foreign direct investment (net inflows) Portfolio equity(net inflows) 0 47 W r l d Bank program Commitments 315 227 632 2,074 Disbursements 485 184 564 847 A - IBRD E - Bilatwal Principal repayments 339 233 432 158 B - IDA D - Other multilateral F - Private C - IMF G - Short-term Net flows 146 -48 t32 689 Interest payments ' 326" 115' 256 Net transfers -181 -164 -124 Development Economics 0129109 99 MAP SECTION IBRD 33388R 75°W 70°W Puerto Bolívar C a r i bb e an S e a J IR A Ríohacha UA G To Santa Marta LA Maracaibo Barranquilla Pico Cristóbal Colón AT L Á N T I C O (5,775 m) COLOMBIA A Cartegena Valledupar N LE DA 10°N Maganqué CESAR Lago de AG Maracaibo M Sincelejo PA NA El Baneo SU SU Monteria M C CR AR Acandí NORTE DE E E Ocaña A SANTANDER LÍV Turbo A D OB To R.B. DE BO ÓR Mérida Cúcuta C VENEZUELA uca To Ca Cord C d Guasdualito Bucaramanga Yarumal le na Arauca iller da Socorro ANTIOQUIA Ma g ARAUCA CÁ Atra r ER a O AND Casanare PAC IF IC SANT to YA Occi Medellin Puerto BO Carreño OCEAN d i dental Quibdo Chiquinquirá Puerto S CASANARE CHOCÓ LDA Tunja Nueva CA Manizales CUNDINA- Yopal 5°N RISARALDÁ Santa Rita 5°N Cartago Pereira MARCA BOGOTÁ VICHADA Atacavi ta Armenia Me QUINDIO tal San Pedro Gaviotas Ibaque Giradot en Villavincencio Chaviva Vich a da ri al M A a O DISTRITO Buenaventura Buga ntr VALLE DEL LI Puerto TO Palmira Inirída Ce er CAPITAL ill CAUCA Cali M E TA rd a San Juan er Co de Arama ill Neiva Guaviare GUAINÍA rd CAUCA HULA Mapiripana Tabaquén Co San José Guapí Popayan del Guaviare Brujas San Vicente Garzon del Caguán Calamar Patía Tumaco Neg Florencia G U AV I A R E NARIÑO ro San Rafael Miraflores Mitu Pasto Cagu Mocoa Vau pés án Yavarate To Ipiales PUTUM CAQUETÁ VA U P É S Puerto AY Ibarra Asis O Macujer Puerto Huitoto 0°N Puerto 0°N Leguízamo Puerto Lérida E C U A DOR Pizarro Caq u etá Puerto Santander Locas de Ptu Cahuinari ma y CO LOMB I A o La Pedrera AMAZONAS El Encanto SELECTED CITIES AND TOWNS BRA ZI L DEPARTMENT CAPITALS NATIONAL CAPITAL PERU RIVERS This map was produced by the Map Design Unit of The World Bank. The boundaries, MAIN ROADS 0 80 160 240 320 Kilometers colors, denominations and any other information shown RAILROADS on this map do not imply, on Leticia the part of The World Bank 0 40 80 120 160 200 Miles Group, any judgment on the DEPARTMENT BOUNDARIES legal status of any territory, or any endorsement or INTERNATIONAL BOUNDARIES acceptance of such 75°W 70°W boundaries. FEBRUARY 2009