The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Justice for Business Project (P167247) EUROPE AND CENTRAL ASIA | Croatia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 5 | ARCHIVED on 28-Jun-2022 | ISR51377 | Implementing Agencies: Ministry of Economy and Sustainable Development (MoESD), Ministry of Justice and Public Administration (MoJPA), Ministry of Physical Planning, Construction and State Assets (MoPPCSA), Republic of Croatia Key Dates Key Project Dates Bank Approval Date: 31-Mar-2020 Effectiveness Date: 29-Jun-2020 Planned Mid Term Review Date: 01-Dec-2022 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2025 Revised Closing Date: 30-Jun-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the business regulatory procedures and justice service standards for businesses andcitizens. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Reducing the administrative burden for businesses to interact with government Improving justice services for businesses and citizens Project Management and Technical Assistance Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Project performance has improved since the last ISR of December 2021. Total disbursement now stand at Euro11.588 Million (approximately 11.59% of the IBRD loan). As of June 15, 2022, disbursement linked results have been achieved and related disbursements processed in relation to the following disbursement link indicators: DLI #1 Implementation of a single digital window for LLCs, DLI 3#a Simplifying construction permitting, DLI #3b Simplifying the requirements for professional services in the construction sector, DLI #4 Increased uptake of e-Justice tools, and DLI #5 reduction of the court backlog of cases older than 10 years. A Grievance Redress Mechanism has been established for the Project and is accessible in the following link:https://mpu.gov.hr/istaknute- teme/projekti/projekti-ostalo/projekti-financirani-iz-zajmova-medjunarodnih-financijskih-institucija/poziv-na-javno-savjetovanje/21598. 6/28/2022 Page 1 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improvement of business regulatory procedures IN01139478 ►Time and number of procedures to register an LLC (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5.78 days and 3 Additional 20% procedures (court 19.5 days and 7 8.77 days and a single reduction (30% of registry, tax Value procedures to start an procedure to start an baseline) in the time administration, pension LLC LLC. and procedures for fund and bank) to start registering LLCs an LLC. Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 30-Dec-2022 Measured as a percentage reduction in time and the number of procedures. Since the Doing Business Report was cancelled, the team has relied on alternative data sources, such as the information provided by the Ministry of Economy and Sustainable Development (MoESD). Moreover, the WB team hired a Consultant to provide an independent third party review of the information submitted by the Ministry. The Comments: Consultant has confirmed this information. The verification protocol as provided in the Project Operational Manual was revised accordingly. The data that was first reported in the June 2021 ISR (and subsequently included in the November 2021 ISR) referred to an estimate of 5.78 days and 3 procedures for the incorporation process through START. This information was based on the data provided by MoESD. However, the Third Party Verification (TPV) 6/28/2022 Page 2 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) reported a different estimate on the number of days and the number of procedures for the incorporation process. The TPV reported a total of 10.91 days and a single procedure for 2020, and 8.77 days and a single procedure for 2021. These calculations are based on the Financial Agency’s (FINA) data. Therefore, the task team proposes to correct the calculations for the previous reporting period IN01139480 ►Percentage of licenses with information on licensing requirements published online (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 0 percent licensed 0 percent licensed 0 percent licensed activities with online activities with online activities with online Value 75% information on licensing information on licensing information on requirements requirements licensing requirements Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 Comments: Number of licenses that can be applied for and obtained online IN01139632 ►Number of procedures to obtain a construction and a use permit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional 20% 63% reduction (14 reduction (35% from 15% reduction in the procedures) in the 22 procedures to obtain the baseline) in the number of procedures to number of procedures Value a construction permit and number of procedures obtain a construction and to obtain a a use permit to obtain a a use permit. construction permit construction and a use and a use permit. permit Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 Since the Doing Business Report was cancelled, the team relied on alternative data sources, such as the information provided by the Ministry of Construction, Physical Planning and State Assets. Accordingly, the verification protocol was revised as documented in the Project Operational Manual. The WB team also hired a Consultant that provided independent third party review and confirmed the information submitted Comments: by the Ministry. Thus, the verification process based on the revised POM has been completed and the confirmation package was submitted for disbursement. Improvement of justice service standards for businesses and citizens IN01139479 ►Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 240 days (25% 320 days Value 284.00 218 days reduction) Date 31-Dec-2019 31-Oct-2021 31-May-2022 31-Dec-2023 Disposition Time (DT) of commercial cases. The disposition time is measured from January 1 to December 31. MOJPA notified the Bank of the progress against the baseline and partial achievement of the 2021 DLR. Currently, MoJPA is updating the Report on the achievement based on the comments and Comments: guidance provided by the Bank team and once the package is completed, it will be submitted for disbursement. MOJPA has notified the Bank of the progress against the baseline and the target results in the first quarters of 2022. The current value of 218 days is based on the calculation of the court’s performance and 6/28/2022 Page 3 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) includes performance data only for the first five months (January-May) in 2022. This is the main reason for the difference between the previous ISR, the current one and result reported on December 31, 2021. Next comparable data will be available at the end of this calendar year IN01139631 ►Court users’ and stakeholders’ satisfaction with respect to service delivery in the four selected courts (citizen engagement indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Terms of Reference Terms of Reference for for Court Users' Court Users' Survey are Survey are currently in 20% increase in user currently in preparation TBD (The baseline will preparation and and stakeholder and survey/s will be be set by the results of a survey/s will be satisfaction from the Value conducted by the end of survey to be conducted conducted by the end baseline in the four 2021. (The baseline will after loan effectiveness) of 2022. (The baseline court facilities where be set by the results of a will be set by the renovation is done survey/s to be conducted results of a survey/s to by the end of 2021). be conducted). Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2024 Measured through a survey as court users’ and stakeholders’ satisfaction with respect to the quality of justice service delivery in the four selected courts. It is expected first survey/s to be conducted by the end Comments: of 2022 that would inform the baseline. Intermediate Results Indicators by Components 1.1. Removing regulatory barriers for market entry and operation IN01139636 ►Implementation of a single digital window for LLCs (DLI 1) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target A single digital window, which can be accessed from different entry points, is the only system for the completion of all A single digital window A single digital window the formalities required The single digital window that offers online that offers online by the 5 agencies Value for LLCs is not business registration for business registration (Commercial Court operational LLCs is operational and for LLCs is operational Registry, Tax in use. and in use. Administration, Statistics, Pension and Health Insurance) to start an LLC and registration of at least five types of changes. Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 First, milestone has been achieved. Currently, the verification process has been completed and Comments: confirmation package has been submitted for disbursement. IN01139643 6/28/2022 Page 4 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) ►Number of changes for LLCs that are digitalized through the single digital window (e.g. change in address, name, directors, voluntary liquidation) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 Key changes for LLCs that can be registered online. Expected by the end of 2022 and the team will report Comments: against the progress in the next ISR. IN01139644 ►Percentage of new LLCs disaggregated by gender (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 LLCs disaggregated by gender. Expected only in year 3 of the project. Comments: IN01139645 ►Beneficiary satisfaction with business registration services offered through single digital window(citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 Satisfaction survey on business registration services. It is expected that single digital window will offer Comments: survey feature by the end of 2022. IN01139647 ►Beneficiary satisfaction with the online information licensing platform (citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2022 Satisfaction survey on licensing online informational platform is expected in Year 4. Comments: IN01139648 ►Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value There is no online There is no online There is no online An online informational informational licensing informational licensing informational licensing portal with licensing portal; 0 licenses portal; 0 licenses portal; 0 licenses requirements is published published published operational online/digitalized online/digitalized online/digitalized Licensing for 15 business activities is digitalized and transactional 6/28/2022 Page 5 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Date 31-Dec-2019 16-Jun-2021 13-Jun-2022 30-Dec-2022 Licensing requirements are published online and the number of licenses that can be applied for and obtained online. New licensing (information) portal is expected to be published in 2022. However, the Comments: Government in NRRP has set 2024 as a new deadline for publishing the portal with licensing requirements. 1.2. Simplifying construction permitting and improving market functioning in the construction sector IN01139637 ►Simplifying construction permitting (DLI 3a) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target a. E-Dozvola platform is a. E-Dozvola platform fully operational in is fully operational in E-Dozvola platform Croatia, including in City Croatia, including in reflects simplified of Zagreb. City of Zagreb. construction permitting E-Dozvola platform is not b. Construction b. Construction procedures and is operational in the city of permitting procedures permitting procedures Value upgraded to include Zagreb have been simplified by have been simplified the “E-Construction the ministry in charge of by the ministry in Logbook” and construction by charge of construction issuance of the use introducing the e- by introducing the e- permit Conference module in e- Conference module in Dozvola platform. e-Dozvola platform. Date 31-Dec-2019 21-Dec-2021 13-Jun-2022 31-Dec-2022 Based on the publicly available information, and the information provided by the Ministry of Construction, Physical Planning and State Assets, the E-Dozvola platform is operational both at the national level and in the City of Zagreb. Moreover, based on the same information as above, simplification of building control procedures has been accomplished despite the lack of an Action Plan, primarily thanks to a new Comments: functionality offered through the e-Dozvola platform, which is known as the e-Conference module. The WB team verified the DLRs foreseen for year 2020 and the confirmation package has been submitted for disbursement. IN01139640 ►Simplifying requirements for the provision of professional services in the construction sector (DLI 3b) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target One (1) requirement One (1) requirement (mandatory (mandatory professional professional chamber chamber membership is membership is abolished) for each of the abolished) for each of At least one two professions (works the two professions 0 requirements are requirement for each manager and site (works manager and simplified in the provision of the 4 additional Value manager) in the site manager) in the of professional services professions in the construction construction in the construction sector construction sector is sector is simplified. The sector is simplified. simplified withdrawal procedure The withdrawal was completed in procedure was October and mil. 1 EUR completed in October disbursed. and mil. 1 EUR disbursed. Date 31-Dec-2019 21-Dec-2021 13-Jun-2022 30-Dec-2022 6/28/2022 Page 6 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) First milestone has been achieved, verified and withdrawal of the associated amount has been completed. One (1) requirement (mandatory professional chamber membership is abolished) for each of the two professions (works manager and site manager) in the construction sector is simplified. Comments: Further progress towards the second milestone, will need stronger ownership and push from the MoPPCSA. This issue has been raised by the World Bank and will be discussed in the upcoming meeting of the Steering Committee. 2.1. Expanding the use of electronic services in the justice sector IN01139633 ►Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target (I milestone): 19 municipal courts use e-communication; and misdemeanour (I milestone): E- departments within Misdemeanor communication with 19 municipal courts, departments within municipal courts including High municipal courts and (achieved) and for Misdemeanour Court administrative courts are misdemeanour courts integrated in ICMS not integrated in the including High (achieved, verified and Four Administrative ICMS Misdemeanour Court disbursed). Courts and the High All commercial courts (9) using ICMS (verified and Administrative Court integrated in ICMS pending disbursement) (II milestone): are integrated in ICMS; Value Additional 9 municipal and at least nine All commercial courts (II milestone): E- courts – 31 courts in additional municipal use e-communication communication with total use e- courts use the e- with lawyers, courts additional 9 municipal communication and all communication system experts and bankruptcy courts (achieved) and (4) administrative (2021). trustees. four administrative courts courts and High and High Administrative Administrative Court 2 municipal courts use e- Court using ICMS integrated in ICMS communication system. (achieved pending (achieved, verified by confirmation and TPV and currently verification). pending completion of disbursement package). Date 31-Dec-2019 31-Oct-2021 13-Jun-2022 31-Dec-2021 (I milestone): 19 municipal courts use e-communication; and misdemeanour departments within municipal courts, including High Misdemeanour Court are integrated in ICMS (achieved, verified and disbursed). (II milestone): Additional 9 municipal courts (31 in total) use e-communication; and all (4) administrative Comments: courts and High Administrative Court are integrated in ICMS (achieved, verified and pending completion of disbursement package). IN01139639 ►Percentage of e-briefs in total number of commercial courts briefs (communication of the courts with parties to the proceedings) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.59 53.55 54.00 45.00 Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2024 Data on "Percentage of e-briefs in total number of commercial courts briefs (communication of the courts Comments: with parties to the proceedings)". 6/28/2022 Page 7 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 2.2. Improving efficiency of dispute resolution in municipal and commercial courts IN01139634 ►Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 30% reduction with Value 9131 cases 8,983 cases 9261 cases respect to the baseline Date 31-Dec-2019 31-Oct-2021 31-May-2022 31-Dec-2022 (I Milestone): Verified (77,2% achievement-8426 cases) and partially disbursed (3,088 mil.) upon evidence and report presented by the MoJPA and courts at the end of 2020. The Annual Report on the judicial branch for 2021 presented by the president of the Supreme court (SC) before the Parliament informs of the significant increase of the aging case index and additional “inflow” of 13 669 cases to the backlog of older than 10 years. Despite the fact that the courts managed to resolve 13 805 cases during 2021, with decreased number of judges-especially at the first instance where most of Comments: the backlog resides- the result for 2021 kept the level of backlog as in 2020 (8,426 cases). The president of the SC requested the county courts to prepare a plan for reducing the cases older than 7 years and MOJPA has included this new target in the new strategy for development of judiciary (NRRP 2021-2026, National Plan for justice development 2022-2026). Better and closer monitoring mechanism of age structure has been put in place and it remains to be seen if the next milestone (20% reduction) will be achieved by the end of 2022, when the data comparable to the baseline will be available. IN01139642 ►Percentage of cases older than 10 years against the total number of unresolved/pending cases (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.55 2.48 2.39 1.50 Date 31-Dec-2019 31-Oct-2021 31-May-2022 31-Dec-2024 Percentage of cases older than 10 years against the total number of unresolved/pending cases. The percentage has increased in comparison to 2021, due to the increased number of aging cases (age case Comments: index) during 2021. However, overall number of all pending cases is reducing. Relevant comparable data will be available at the end of this calendar year. 2.3. Rehabilitation and upgrading of selected court facilities IN01139641 ►Improvement in energy efficiency certificate grade (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Zagreb - Energy Zagreb - Energy Zagreb - Energy Zagreb – Energy Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: C Varazdin - Energy Varazdin - Energy Varazdin - Energy Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: F Varazdin – Energy Value Efficiency Certificate: Kutina - Energy Kutina - Energy Kutina - Energy C Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: F Kutina – Energy Vinkovci - Energy Vinkovci - Energy Vinkovci - Energy Efficiency Certificate: Efficiency Certificate: F Efficiency Certificate: F Efficiency Certificate: F C 6/28/2022 Page 8 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Vinkovci – Energy Efficiency Certificate: C Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2024 Improved energy efficiency through reduced primary energy, heating, cooling and water consumption Comments: following reconstruction of courts. IN01139646 ►User satisfaction with the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Court (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Terms of Reference Terms of Reference for for Court Users' Court Users' Survey are Survey are currently in currently in preparation, preparation, surveys TBD (A baseline survey surveys are expected to are expected to be 30% increase in user will be carried out after Value be conducted in the first conducted in the first satisfaction from the effectiveness to semester of 2022 in all semester of 2022 in all baseline determine the baseline.) (four) locations. The (four) locations. The results of the surveys will results of the surveys inform the baseline. will inform the baseline. Date 31-Dec-2019 16-Dec-2021 13-Jun-2022 31-Dec-2024 Satisfaction survey on the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Court. It is expected first survey to be conducted in the third semester of 2022 that would inform the Comments: baseline. 2.4. Strengthening Public Investment Management practices in the judiciary IN01139635 ►Rollout of the investment and facility management application for the judiciary (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Government The Government decided decided to implement to implement this facility Investment and facility this facility management tool across management application management tool all sectors, so the Investment and facility for the judiciary has not across all sectors, so procurement has been management been rolled out. the procurement has Value postponed until application for the been postponed until specifications for other judiciary has been Technical specifications specifications for other sectors are finalized and rolled out prepared for sectors are finalized ready to publish for e- procurement process and ready to publish consultation and for e-consultation and tendering procedure. tendering procedure. Date 31-Dec-2019 16-Dec-2021 20-Jun-2022 31-Dec-2023 The project also envisioned the strengthening of the Public Investment Management practices in the judiciary. However, so far, the investment and facility management application for the judiciary has not been rolled out yet. The technical specifications have been prepared for the procurement process but are Comments: still pending. This delay is due to the transfer of competence for procurement of these services from the MoJPA to the Central State Office for Digital Society, which are in charge for digitization of the public sector. This issue has been raised by the World Bank and will be followed up at the Steering Committee. 6/28/2022 Page 9 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Citizen Engagement IN01139638 ►Number of outreach events organized (citizen engagement indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Dec-2019 31-Oct-2021 20-Jun-2022 31-Dec-2023 Citizen engagement events organized (for instance, focus groups, court open days and workshops at select court sites). Participants will be surveyed regarding their satisfaction with the effectiveness of the Comments: citizen engagement process. Expected only in year 3 of the project. Performance-Based Conditions IN01139649 ►PBC 1 Implementation of a single digital window for LLCs (DLI 1) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years A single digital window A single digital window that offers online that offers online business The single digital window Value business registration for registration for LLCs and -- for LLCs is not operational LLCs is operational and simple LLCs is operational in use. and in use. Date -- 16-Dec-2021 13-Jun-2022 -- Comments: 2020 DLR achieved, verified and EUR 2 mil. disbursed. IN01139650 ►PBC 2 Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Output, 5,515,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years There is no online There is no online There is no online informational licensing informational licensing informational licensing Value portal; 0 licenses published portal; 0 licenses portal; 0 licenses -- online/digitalized published published online/digitalized online/digitalized Date -- 16-Jun-2021 13-Jun-2022 -- IN01139651 ►PBC 3 Simplifying construction permitting (DLI 3a) (Text, Output, 11,030,000.00, 0.00%) 6/28/2022 Page 10 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Baseline Actual (Previous) Actual (Current) 5 years a. E-Dozvola platform is fully operational in a. E-Dozvola platform is Croatia, including in City fully operational in Croatia, of Zagreb. including in City of Zagreb. E-Dozvola platform is not b. Construction b. Construction permitting operational in the city of permitting procedures procedures have been Value -- Zagreb have been simplified by simplified by the ministry the ministry in charge of in charge of construction construction by by introducing the e- introducing the e- Conference module in e- Conference module in e- Dozvola platform. Dozvola platform. Date -- 21-Dec-2021 13-Jun-2022 -- Since the Doing Business Report was cancelled, the team relied on alternative data sources, such as the information provided by the Ministry of Construction, Physical Planning and State Assets. Accordingly, the verification protocol was revised as documented in the Project Operational Manual. The WB team also hired a Comments: Consultant who provided independent third party review and confirmed this information. Thus, verification process based on the revised POM has been completed and the confirmation package was submitted for disbursement. IN01139652 ►PBC 4 Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Output, 5,515,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years (I milestone): 19 municipal courts use e- (i) All (34) Municipal communication; and Misdemeanor departments Courts are integrated in misdemeanour within municipal courts and ICMS (e-File), including departments within administrative courts are its misdemeanor municipal courts, including not integrated in the ICMS departments, two High Misdemeanour Court All commercial courts (9) Municipal Misdemeanor integrated in ICMS integrated in ICMS courts and Municipal (achieved, verified and Criminal court in Zagreb. disbursed).(II milestone): Value All commercial courts use (ii) 31 Municipal courts -- Additional 9 municipal e-communication with use e-communication courts – 31 courts in total lawyers, courts experts and platform use e-communication and bankruptcy trustees. (iii) All (4) Administrative four administrative courts Courts and High and High Administrative 2 municipal courts use e- Administrative Court are Court integrated in ICMS communication system. integrated in ICMS (e- (achieved, verified by TPV File) and currently pending completion of disbursement package). Date -- 31-Oct-2021 13-Jun-2022 -- (I milestone): 19 municipal courts use e-communication; and misdemeanour departments within municipal courts, including High Misdemeanour Court are integrated in ICMS (achieved, verified and EUR 2 mil. Comments: disbursed). (II milestone): Additional 9 municipal courts (31 in total) use e-communication; and all (4) administrative courts and High Administrative Court are integrated in ICMS (achieved, verified and pending completion of disbursement package). 6/28/2022 Page 11 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) IN01139653 ►PBC 5 Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years 20% reduction with Value 9131 cases 8,983 cases 9261 cases respect to the baseline Date -- 31-Oct-2021 31-May-2022 -- (I Milestone): Verified (77,2% achievement-8426 cases) and partially disbursed (3,088 mil.) upon evidence and report presented by the MoJPA and courts at the end of 2020. The Annual Report on the judicial branch for 2021 presented by the president of the Supreme court (SC) before the Parliament informs of the significant increase of the aging case index and additional “inflow” of 13,669 cases to the backlog of older than 10 years. Despite the fact that the courts managed to resolve 13,805 cases during 2021, with reduced number of judges-especially at the first instance where most of the backlog resides- the result for 2021 kept the level of Comments: backlog as in 2020 (8,426 cases). The president of the SC requested the county courts to prepare a plan for reducing the cases older than 7 years and MOJPA has included this new target in the new strategy for development of judiciary (NRRP 2021-2026, National Plan for justice development 2022-2026). Better and closer monitoring mechanism of age structure has been put in place and it remains to be seen if the next milestone (20% reduction) will be achieved by the end of 2022, when the data comparable to the baseline will be available. IN01139654 ►PBC 6 Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years 320 days Value 284.00 218 days -- Date -- 31-Oct-2021 31-May-2022 -- Disposition Time (DT) of commercial cases. The disposition time is measured from January 1 to December 31. MOJPA notified the Bank of the progress against the baseline and partial achievement of the 2021 DLR. Currently, MoJPA is updating the Report on the achievement based on the comments and guidance provided by the Bank team and once the package is completed, it will be submitted for disbursement. MOJPA has Comments: notified the Bank of the progress against the baseline and the target results in the first quarters of 2022. The current value of 218 days is based on the calculation of the court’s performance and includes performance data only for the first five months (January-May) in 2022. This is the main reason for the difference between the previous ISR, the current one and result reported on December 31, 2021. Next comparable data will be available at the end of this calendar year. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P167247 IBRD-90570 Effective USD 110.30 110.30 0.00 12.89 97.52 12% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 6/28/2022 Page 12 of 13 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) P167247 IBRD-90570 Effective 31-Mar-2020 15-Apr-2020 29-Jun-2020 30-Jun-2025 30-Jun-2025 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/28/2022 Page 13 of 13