Document of The World Bank FOR OFFICIAL USE ONLY Report No: 66921-MA PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EURO 12 MILLION (US$15.8 MILLION EQUIVALENT) TO THE KINGDOM OF MOROCCO FOR A JUDICIAL PERFORMANCE ENHANCEMENT FOR SERVICE TO CITIZEN PROJECT ("Mahkamati") May 16, 2012 This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2012) Currency Unit = EUR EUR 0.75651549 = US$1 FISCAL YEAR January 1 - December 31 Acronyms and Abbreviations AOP Annual Operating Plan CdA Court of Appeal (Cour d'Appel) CdAC Court of Appeal of Commerce (Cour d'Appel de Commerce) CdC Court of Commerce (Tribunal de Commerce) CEPEJ European Commission for the Efficiency of Justice (Commission Europdenne pour l'Efficacit de la Justice) CdST Technical Steering Committee (Comit de Suivi Technique) CMS Case Management System CAP Performance Improvement Committees (Comit d'Amlioration de la Performance) CPS Country Partnership Strategy CQS Selection Based on Consultant's Qualifications CSM Superior Judicial Council (Conseil Supirieur de la Magistrature) CSO Civil Society Organization CSPJ Superior Council of the Judicial Power (Conseil Supirieur du Pouvoir Judiciaire) DECM Directorate of Research, Cooperation and Modernization (Direction des Etudes, de la Coopiration et de la Modernisation) DPL Development Policy Loan EU European Union EU MEDA EU Euro-Mediterranean Partnership Program GEPEC Strategic Planning of Human Capital (Gestion privisionnelle des Effectifs, Emplois et Comptences) GoM Government of Morocco (Gouvernement du Maroc) GPN General Procurement Notice IC Individual consultant ICT Information and Communications Technology ICB International Competitive Bidding IL Investment Loan ISM Superior Judicial Training Institute (Institut Supirieur de la Magistrature) LCS Least-cost Selection MAGG Ministry of Economic and General Affairs (Ministre des Affaires Gindrales et de la Gouvernance) MEF Ministry of Economy and Finance (Ministre de l'Economie et Finances) MENA Middle East and North Africa M&E Monitoring and Evaluation MdJL Ministry of Justice and Liberties (Ministre de la Justice et des Libertis) MTEF Medium-Term Expenditure Framework NCB National Competitive Bidding NGO Non-governmental organization PAPJ Court performance improvement plan (Plan d'amlioration de la performance de la juridiction) PDO Project Development Objective PER Public Expenditure Review POM Project Operational Manual QCBS Quality & Cost Based Selection REC Strategic Staffing Framework (Rdfirentiel des emplois et des comptences) SAJ Automated case management software of the MdJL (Systme Informatisk de Gestion des Affaires du MdJL) SBD Standard Bidding Document SGG Secretary General of the Government (Secrtaire Gindral du Gouvernement) SOE Statement of Expenditures SRA Annual Reform Strategy (Stratigie de Riforme Annuelle) SSS Single Source Selection TPI Court of First Instance (Tribunal de Premidre Instance) UGP Project Management Unit (Unit de Gestion du Projet) Regional Vice President: Inger Andersen Country Director: Neil Simon Gray Sector Director: Manuela Ferro Sector Manager: Guenter Heidenhof Task Team Leader: Philippe de M6neval Table of Contents I. Strategic Context.................... .................. .......1.... A. Country Context ..................1..........................1 B. Sectoral and Institutional Context .................................... 2 C. Higher Level Objectives to which the Project Contributes ................... 6 II. Project Development Objectives.......................................... 6 A. PDO ........................................................ 6 i. Project Beneficiaries. ..................................... ......... 7 ii. PDO level results indicators. .....................7.... .............7 III. Project Description.................................................7 A. Project components.............................................7 B. Project Financing..............................................12 i. Lending Instrument..............................................12 ii. Project Cost and Financing........................................13 C. Lessons Learned and Reflected in the Project Design ...............14 IV. Implementation...................................................16 A. Institutional and Implementation Arrangements .............. ...........16 B. Results Monitoring and Evaluation.................. ................17 C. Sustainability .................................................17 V. Key Risks and Mitigation Measures......................................18 VI. Appraisal Summary ....................................................19 A. Economic and Financial Analysis...................................19 B. Technical.................................................... 20 C. Financial Management.......................................... 21 D. Procurement................................................. 22 E. Social (including safeguards)...................................... 22 F. Environment (including safeguards).................................24 Annex 1: Results Framework and Monitoring..................................25 Annex 2: Detailed Project Description....................................... 30 Annex 3: Implementation Arrangements...................................... 43 Annex 4 Operational Risk Assessment Framework (ORAF).........................54 Annex 5: Implementation Support Plan....................................... 58 PAD DATA SHEET Morocco Judicial Performance Enhancement for Service to Citizen Project ("Mahkamati') (P125799) PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA MNSPS Basic Information Date: 16-May-2012 Sectors: Law and justice (100%) Country Director: Neil Simon M. Gray Themes: Access to law and justice (60%), Other rule of law (40%) Sector Manager/Director: Guenter Heidenhof/Manuela V. Ferro Project ID: P125799 EA Category: C - Not Required Lending Instrument: Specific Investment Loan Team Leader(s): Philippe De Meneval Joint IFC: No Borrower: Government of Morocco Responsible Agency: Ministry of Justice and Liberties Contact: Mr. Abdelmajid Rhomija Title: General Secretary of Ministry of Justice and Liberties Telephone No.: 212537732274 Email: rhomija@justice.gov.ma Project Implementation Period: Start Date: 01-Jul-2012 End Date: 30-Jun-2016 Expected Effectiveness Date: 30-Oct-2012 Expected Closing Date: 31-Dec-2016 Project Financing Data(US$M) [X ] Loan [ ] Grant Terms of the Loan: Variable Spread Loan, denominated in EUR with a final maturity of twenty-nine [ Credit [ ] Guarantee (29) years including a grace period of six (6) years For Loans/Credits/Others Total Project Cost (US$M): 15.80 Total Bank Financing (US$M): 15.80 Financing Source Amount(US$M) Borrower 0.00 International Bank for Reconstruction and Development 15.80 Total 15.80 Expected Disbursements (in USD Million) Fiscal Year 2012 2013 2014 2015 2016 Annual 0.47 3.42 6.40 3.91 1.60 Cumulative 0.47 3.89 10.29 14.20 15.80 Project Development Objective(s) The Project Development Objective is to strengthen the capacity of the Borrower's justice sector to deliver efficient, timely and transparent services to citizens and businesses through: (a) piloting of a participatory reform process involving judges, administrative staff, judicial auxiliaries and users in selected courts in the Project Area; and (b) strengthening the institutional capacity of the central functions of the Ministry of Justice and Liberties (MdJL) to better support and monitor the court system. Components Component Name Cost (USD Millions) Component 1: Improving Court Performance in the Project Area 9.80 Component 2: Upgrading the Strategic Planning and Management Capacities of the 4.90 Ministry of Justice and Liberties (MdJL) Component 3: Project Management, Monitoring and Evaluation 1.10 Compliance Policy Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [X] Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [X] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Establishment of the Technical Steering Committee X Yearly (CdST) Description of Covenant The Borrower, through the MdJL, shall maintain during the implementation of the Project, under the chairmanship of the Secretary General of the MdJL, the CdST composed of representatives of the core MdJL directorates and decentralized units. Name Recurrent Due Date Frequency Project Operational Manual (POM) - Implementation x Yearly Description of Covenant The Borrower shall implement the Project in accordance with the provisions of the Project Operation Manual (POM) and with the applicable Annual Operating Plan (AOP), as approved by the Bank. Name Recurrent Due Date Frequency Establishment of the Project Management Unit X Yearly (UGP) Description of Covenant The Borrower shall maintain the UGP with qualified staff and adequate resources for the day-to-day implementation of the Project and for the disbursement, financial management and procurement activities, as well as monitoring and evaluation Name Recurrent Due Date Frequency Partnership Agreement with ISM X Yearly Description of Covenant The Borrower shall ensure that the Partnership Agreement is maintained and implemented in accordance with its terms and conditions, at all times during the implementation of Part B.3(ii) of the Project Name Recurrent Due Date Frequency Establishment of local working groups and task X Yearly forces Description of Covenant The Borrower shall provide all the assistance necessary to the UGP in establishing local working groups and task forces required for implementing the participatory approach at the level of each selected pilot court, in accordance with the procedures described in the Project Operational Manual (POM). Name Recurrent Due Date Frequency Safeguards X Yearly Description of Covenant The Borrower shall ensure that no works in any historical buildings or in any building where asbestos is present shall be carried out, and shall ensure that all works shall be performed in accordance with the World Bank Group's Environmental, Health and Safety Guidelines and as further specified in the POM. Name Recurrent Due Date Frequency Safeguards x Yearly Description of Covenant The Recipient shall implement the Project activities in accordance with the environmental standards as described in the POM Conditions Name ype Adoption of Project Operational Manual Effectiveness Description of Condition The Project Operational Manual, satisfactory to the Bank, has been adopted by the MdJL Name ype Strengthening the capacity of UGP Effectiveness Description of Condition The UGP has recruited a Project coordinator/monitoring and evaluation specialist, a procurement specialist, and a Project assistant, all in compliance with the provisions of Section III.C of Schedule 2 to the Loan Agreement Name ype Partnership agreement between the MdJL and the ISM Disbursement Description of Condition No withdrawal shall be made for non consulting Services, Goods, Consultants' Services, including Training, for Part B.3 (ii) of the Project (Category 2 of Eligible Expenditures) unless the Bank has received a signed copy of the Partnership Agreement, satisfactory to the Bank Team Composition Bank Staff Name Title Specialization Unit Philippe De Meneval Senior Private Sector Team Lead MNSF1 Development Specialist Guenter Heidenhof Sector Manager Governance MNSPS Jean-Charles De Daruvar Senior Counsel Legal LEGEM Hassine Hedda Finance Officer Finance CTRLA David F. Varela Sr Public Sector Spec. Justice Reform PRMPS David A. Bontempo Operations Analyst Operations MNSPS Herimpamonjy Mavoarisoa Program Assistant Program Assistant MNSPS Ranaivoarivelo Heike P. Gramckow Senior Counsel Justice Reform LEGJR Nathalie Munzberg Senior Counsel LEGEN Gael Gregoire Senior Environmental Safeguards Specialist MNSEN Specialist Abdoulaye Keita Senior Procurement Procurement MNAPR Specialist Anas Abou El Mikias Consultant Financial Management MNAFM Lamyae Hanafi Benzakour Financial Management Financial Management MNAFM Specialist Sanaa Bouchikhi Program Assistant Program Assistant MNCMA Non Bank Staff Name Title Office Phone City Jan Richter Consultant Anis Mahfoud Consultant Farid Laaboudi Consultant Juan Pablo Molina Consultant John Sherman Consultant Locations Country First Location Planned Actual Comments Administrative Division Morocco Grand Casablanca R6gion du Grand X 6 pre-selected pilot courts for Casablanca indicative purpose Morocco Chaouia-Ouardigha R6gion de Chaouia- X 2 pre-selected pilot courts for Ouardigha indicative purpose Morocco Gharb-Chrarda- R6gion de Gharb- X 4 pre-selected pilot courts for Beni Hssen Chrarda-Beni Hssen indicative purpose I. Strategic Context A. Country Context 1. Since acceding to the throne in 1999, King Mohammed VI has promoted an agenda of rapid growth, poverty eradication and improved social conditions. Successive governments have articulated this vision through ambitious programs of political, economic and social reforms, whose effects are starting to become visible. Morocco has made strong economic progress since 2001 with growth rates averaging 5.1 percent over 2001-09, almost twice the average rate of the 1990s (2.8 percent). The good growth performance allowed for tangible improvements of the population's economic situation. GDP per capita almost doubled over the last decade and reached US$2,890 in 2009. The overall poverty rate decreased from 15.3 percent in 2001 to 9 percent in 2007. Unemployment rates have fallen from 13% in 2000 to 8.9% in 2011, although they do remain high for young people and higher education graduates. Despite this progress Morocco is still confronted with significant challenges, which include vulnerability to shocks (natural and economic); inadequate social indicators relative to the country's income level; high inequality; and increasing pressure on natural resources, especially water. Large segments of the population remain socially and economically marginalized and, notwithstanding the reduction of absolute poverty, economic vulnerability remains widespread. 2. The wave of democratization that has swept the MENA region since the start of the Arab Spring has also reached Morocco. Morocco's experience of the Arab Spring underlines its political distinctiveness in the region even though many of the same grievances affect the population (corruption, poor housing, social inequality, unemployment). This experience has shown that Moroccans seem more inclined to seek evolution within the system - gradual change continuous with the country's history and religious values. Social protests took place regularly across the country during 2011. This social movement started with calls for political change, curbing of corruption and a more inclusive development process. As a response, King Mohammed VI proposed, in March 2011, a broad and comprehensive package of political reforms that gathered the support of the population through a constitutional referendum. 3. On July, 1, 2011, the new Constitution was approved by referendum. The new constitution notably revised the country's governance structure by: (a) strengthening the Parliament, the Prime Minister' and the Judiciary; (b) empowering local governments; and (c) promoting a more open governance system and public administration based on the principles of transparency, accountability and participation. The new constitution provides for more independence of the Judiciary through the creation of the Superior Council for the Judicial Power (Conseil Superieur du Pouvoir Judiciaire - CSPJ), which will replace the Higher Council of the Judiciary (Conseil Superieur de la Magistrature - CSM). The CSPJ will be chaired by the King and will comprise 20 members, including 3 judges from the Cassation court, 10 judges elected among the judges of Court of Appeals (Cour d'Appel - CdAs) and First Instance Tribunals (Tribunal de Premiere Instance - TPIs), 5 members selected by the King, the Ombudsman of the Kingdom, and the Head of the National Council for Human Rights. The level of independence 1 Article 47 of the Constitution provides that the King appoints the Head of the Government from the leading political party. 1 of the judiciary will also depend on two organic laws that will be drafted in line with the new Constitution, one regarding the CSPJ and the other one regarding the professional status of judges. It is envisaged that the new Parliament and Government will launch in the coming months the revision of the legal, regulatory and institutional framework necessary to implement the constitutional changes. 4. The parliamentary elections on November 25, 2011, brought in a new coalition government. Elections were won by the "Parti de la Justice et du D6veloppement" (Party for Justice and Development - PJD), an Islamist party that had traditionally been in active opposition and has seen its support increasing steadily in recent years. This party campaigned on a platform that included justice reform and won 27% of the vote, almost twice of what the second largest political party achieved. Elections were followed by an intense period of discussions among political parties, from which a four-party coalition Government emerged in early January 2012 with the leader of the PJD as Head of Government. 5. In January 2012, the new government presented a program for democracy ("The Charter of the Majority"). This program focuses on "the implementation of the provisions of the new Constitution, in order to carry out more reforms and build the rule of law, freedom, justice and solidarity among the different components of the Moroccan people and different regions of the Kingdom." A major objective of the government is to "restore the morality in political work and trust in public life by restoring faith and trust in the country's institutions". Toward this end, the government intends to fight resolutely "illegal practices and the cash economy in all areas related to the rights, dignity and freedom of citizens." These themes are all central to the new Government's program that was articulated by the Head of Government in January 2012 and that covers the 2012-2016 period. As regards good governance, the areas of future focus are multiple, but launching a profound reform of the justice sector through a participatory approach figures prominently. B. Sectoral and Institutional Context Reform Progress: 6. The justice sector has witnessed a number of important structural reforms in the past decade. Significant progress has been made in the area of economic reforms. A more business-friendly legal and regulatory framework has been established through the enactment of a new banking law, a modern securities law, and new legislation providing for modem accounting standards. These efforts have been motivated in large measure by the Association Agreement with the European Union (EU) that requires Morocco to harmonize its legal framework with that of the EU. In the field of justice reform, the establishment during the 1990s of specialized courts, such as administrative and commercial tribunals at the first instance and appeal levels is among the most important advances. During the 2000s the World Bank contributed to the enhancement of the functioning of the commercial courts. 7. Progress has also been achieved in the area of court modernization with the support of the European Union through the Euro-Mediterranean Partnership Program (MEDA II, 2004-2010). Out of the 110 existing courts, 40 jurisdictions were covered by that project, among 2 which were 19 Courts of Appeal (CdAs) and 21 Courts of First Instance (TPIs). Beyond improvements of court infrastructure and equipment, basic home-grown electronic systems for case management and user orientation were introduced. Archives were established at the regional level and a website was set up to facilitate access to regulation and jurisprudence. The MdJL continues its efforts to roll out the modernization program to the remaining courts. 8. In August 2009, the King highlighted in a landmark speech the need to improve the justice sector reform and highlighted the following six main axes for additional reforms: (i) strengthening independence of the judiciary; (ii) modernizing its legal framework; (iii) raising the standard of judicial and administrative structures; (iv) raising the standard in the area of human resources; (v) improving its efficiency; and (vi) establishing ethical standards for the judiciary. The King's speech triggered a major reorientation of the scope and focus of legal and judicial reforms. The MdJL developed an integrated and detailed plan addressing the strategic challenges of justice reform which forms the basis for this Project. 9. Reforms aimed at fighting while collar crime and facilitating access to justice are underway. The code of judicial organization, the code of civil procedure, the code of criminal procedure and the law on access to justice were modified in August 2011. Since March 2012, these amendments have resulted in the setting up of a specific framework and procedures for community justice ("justice de proximit6"). Under this approach, the MdJL has established CdAs attached to the TPIs to deal with smaller cases valued at less than 20,000 Dirham (approximately US$ 2,400). The reform allows the establishment of specialized TPIs for labor, criminal and civil matters. Accordingly, in Casablanca, the former TPI has recently been replaced by three smaller TPIs, each specialized as mentioned above. In addition, a simplified procedure has been established for minor claims below 5000 Dirham (approximately US$ 600), permitting notably hearings with a single judge and mobile hearings for remote cities. A single judge will be dealing with criminal cases entailing a fine less than 1200 Dirham (approximately US$ 143). 2 Finally, to battle corruption and white collar crime, divisions specializing in financial crimes have been be set up in the CdAs in Rabat, Casablanca, Fes and Marrakech. 10. The new government has reiterated its commitment to addressing the systemic weaknesses in the judiciary. To build consensus about the legal and judicial reform agenda, the new Minister of the MdJL is launching a national dialogue about the scope and priorities of justice reform. The draft reform program that will be submitted to the stakeholders has been developed following a structured participatory approach and the MdJL will follow the same approach for its implementation. Accordingly, it is envisioned that the national dialogue, through several thematic workshops organized in key judicial districts, will gather views from all stakeholders and the civil society at large on the reform priorities and means. A national conference will approve the reports and the recommendations emanating from the workshops and adopt a 2012-2016 National Charter for reforming the justice sector. 2 These streamlined procedures will not be applicable to family, real estate and decisions involving evictions, neither to the specialized courts such as administrative courts and the commercial courts. 3 Remaining Challenges 11. Despite the above-listed improvements, the Moroccan justice sector is still perceived, internally and externally, to be inefficient and lacking the trust of the citizenry at large. The Global Corruption Barometer released by Transparency International in 20103 ranks Morocco slightly above the regional average on broader governance indicators but the judicial sector is rated as one of the less efficient in this area. The 2010 Global Integrity Report also rates the rule of law in Morocco as "very weak" (56 out of 100 points) based on a set of "de jure" and "de facto" indicators. These rankings are corroborated by assessments of the justice sector that were completed by the Bank in 2003 and updated in late 2010 during the preparation of this Project, which outline notably the need to: (i) enhance the transparency of the judicial decision process; (ii) improve the qualification and specialization of judges and auxiliaries of justice; (iii) reduce delays in case management and enforcement of court decisions; (iv) facilitate access to justice and to legal and judicial information; and (v) enhance the capacity of the MdJL in the area of budget and human resources management. 12. Improving the efficiency of the justice sector remains a key challenge as evidenced by the backlog of cases. The total number of cases has risen significantly, from 786,791 cases per year in 1975 to around 2.7 million cases in 2010. While the population grew between 1994 and 2010 from approximately 26 million to almost 32 million, the number of pending cases grew by 58.06 % in the same period. The total backlog of cases went up significantly, from 676,591 cases unresolved in 2006 up to 812,480 in 2010. The slow execution of judicial decisions in particular is perceived as a major problem that has a negative impact on the functioning of the justice sector. Morocco is ranked No 89 out of 183 countries with respect to the "enforcing contracts" indicator of the Doing Business. 13. The justice sector is understaffed and existing human resources are not used efficiently. While the number of cases grew significantly over the past 3 decades, staffing has not been adapted accordingly. As a consequence, the number of cases per Magistrate grew from 922 in 1994 to 1,011 in 2006. In addition, existing human resources are not used to their full potential. In 2010, women represented only 22% of total number of judges (826 out of 3,792). The responsibilities of court clerks (greffiers) are currently restricted to administrative tasks, while their involvement in the review and settlement of minor disputes could alleviate the pressure on the courts. Additional 1,000 positions of various levels have been granted annually to the Justice sector in the budget laws over last three years. In addition, in August 2011, the MdJL The other countries from the MENA region that have been included in the survey are: Iraq, Israel, Lebanon, and Palestine. On a scale from 1 (not at all corrupt) to 5 (extremely corrupt), the judiciary in Palestine received the best score (2.4) and the judiciaries in Lebanon and Morocco the worst (3.5). See: Transparency International, Global Corruption Barometer 2010: http://www.transparency.org/policy_research/surveys_indices/gcb/20 10/results. 4 See Global Integrity Report 2008, scorecard for Morocco: http://report.globalintegrity.org/Morocco/ See: World Bank, Doing Business Report 2011, p. 182. Doing Business measures the time, cost and procedural complexity of resolving a commercial lawsuit between two domestic businesses. The dispute involves the breach of a sales contract worth twice the income per capita of each country. The report assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. 4 decided to increase significantly the salaries of the court clerks (around 60% increase) as it was perceived that the low wages increased the risk of corruption. 14. Efficiency of reforms is reduced by weak organizational management and outdated service culture. With the exception of a few more advanced courts, prosecutors and judges seem often unaware of modem management techniques, strategic planning, and implementation constraints. In particular, internal organization changes are often decided in a non-inclusive and hierarchical fashion. Accordingly, the Project will focus on building a more open and participatory approach so that improvements are identified, prepared and implemented with all relevant court stakeholders. Rationale for World Bank Involvement 15. The Government has engaged the World Bank's support in the justice sector over several years and, more recently in 2009, specifically asked for a Bank project in this area. Since that request, the Bank and the Government have explored the best way to support the sector, and it was agreed that a DPL was pre-mature given the lack of a robust reform program in place at that time. Together with the Government, the Bank concluded that it would be more opportune to pursue a relatively small investment lending project in the justice sector that would build on the knowledge base and lessons learned to date, would support the design of the sectoral reform program, and thus set the stage for a stepped-up financing and support in the future. 16. Lending support for Developing Commercial Justice. The Project follows previous Bank engagements in Morocco, in the context of a continued dialogue in this sector. Following a Private Sector Assessment, the Bank took a leading role in enhancing the functioning of the Moroccan Courts of Commerce (CdCs), the modernization of business-related legislation and the overhaul of the training framework for judges (FY 2000-2004 Legal and Judicial Development Project - Investment Loan 3567). This Project is considered successful by local stakeholders and was rated as satisfactory by the Bank. The Bank also played a critical catalytic role in mobilizing financial resources from other donors and partners, including the EU, USAID and UNDP, all of which have contributed to reforming the Moroccan justice sector. 17. Legal and Judicial Assessments. In parallel, the Bank has worked closely and continuously with GoM on justice sector related ESW pieces, including an Insolvency and Creditors' Rights (ICR) Report on the Observance of Standards and Codes (ROSC) and a full- fledged Judicial Sector Assessment in 2003. As part of the policy notes prepared in November 2007, a Justice Sector Policy Note was prepared, which, in GoM's views accurately reflected the diagnostic of the sector and the prevailing consensus for the need to accelerate the reform of the justice sector. Finally, in 2010, the Bank updated the Judicial Sector Assessment of 2003, which focused on the legal environment for justice, the judicial organization and functioning, and the access to justice. This review was instrumental in reenergizing the dialogue on the justice sector with the MdJL and informing the participatory approach and the components of the present Project. The Bank is also working on a Public Expenditure Review in the justice sector which looks at planning and allocation of resources and institutional performance of the judiciary. The preliminary results of this review indicate the need to reinforce the monitoring and evaluation of courts performance. The review, which will be completed by mid-2012 will provide additional analytical underpinnings for the implementation of this Project. 5 18. International Experience with the Participatory Approach. The update of the Judicial Sector Assessment revealed that in spite of many significant reforms undertaken by the Ministry of Justice over the past ten years concrete impact on users and ownership of court staff had been weak due to a lack of a more consultative and transparent approach to reform. Following this assessment, the GoM requested the assistance of the World Bank with a view to gaining access to international experience in this area. During the preparation of the Project, the World Bank team conducted a number of consultations with civil society representatives as well as with professional organizations of justice stakeholders. Stakeholders confirmed that World Bank support would add value to the justice reform process by bringing in best international experiences with participatory reforms in the justice sector. In parallel, the new Constitution specifically states that the Government is obliged to work in a more participatory and inclusive manner. C. Higher Level Objectives to which the Project Contributes 19. The Project is fully consistent with the focus on governance of the current CPS and will consolidate the outcomes of past Bank and EU interventions in the justice sector. The Project will contribute to the development of a more efficient justice sector, a commitment at the core of the current institutional and governance reform process. The King's speech in August 2009, the new Constitution approved in July 2011, the legislative changes approved in August 2011, and the program of the new coalition government, are all evidence of the priority attached by the highest authorities to this higher level objective. The current CPS (FY 2010-13), and the CPS Progress Report (being discussed at Board at the same time as this project) confirm governance as an overarching priority for Morocco, in line with the Government's program considering improved justice as a key to good governance and efficient business environment. The justice sector reform is thus a priority for the World Bank's partnership in Morocco support under the first CPS pillar - on growth, competitiveness and employment- as well as a priority of its cross-cutting governance agenda. 20. The Project is fully consistent with the new government's emphasis on strengthening service delivery to citizens within a new governance framework structured around transparency, accountability and participation. The GoM is currently sponsoring a National Dialogue on Justice that aims at building broad consensus about the goals and objective of justice reforms among all relevant stakeholders. Project design is flexible enough to accommodate conclusions and recommendations of this dialogue. It is expected that the dialogue process and its main outputs will also help mobilizing additional resources to the sector from other donors. For example, the EU is considering a new program for 2013 that would be aligned to the results of the National Dialogue. II. Project Development Objectives A. PDO 21. Objective of the Project. The Project Development Objective is to strengthen the capacity of the Borrower's justice sector to deliver efficient, timely and transparent services to 6 citizens and businesses through: (a) piloting of a participatory reform process involving judges, administrative staff, judicial auxiliaries and users in selected courts in the Project Area; and (b) strengthening the institutional capacity of the central functions of the MdJL to better support and monitor the court system. i. Project Beneficiaries. 22. The primary target groups of the Project will be: (a) the pilot court users, judicial auxiliaries (lawyers, notaries, bailiffs, and experts), judges, clerks and other administrative staff of the pilot courts of the Project, (b) the MdJL, and (c) the ISM. The Project is also intended to benefit users of all courts more generally as it will provide the MdJL with the methodology and operational tools needed to scale up at other courts the approach tested in the pilot courts. To emphasize the participatory approach followed in design and implementation the official name for the Project in Arabic will be Mahkamati ("My Court"). ii. PDO level results indicators. 23. Results will be measured by a mix of objective indicators and perception-based indicators, which will capture the following: - Level ofpublic trust and confidence in the judicial system: Increase in the awareness of the public in selected districts about; (a) standards of transparency, competency and effectiveness applicable to the justice sector, and (b) their rights and duties in connection with the justice sector; - Quality of service delivery: Increase in the level of satisfaction of users of the pilot courts of the selected districts with the quality, timeliness and effectiveness of access to court services, court files, and information about court procedures as a result of the PAPJs; - Effectiveness of case processing: Increase in the clearance rate of cases in the pilot courts of the selected districts; - Institutional capacity of MdJL: Increase in the capacity to monitor the performance of courts and allocate resources according to court needs and performance. III. Project Description A. Project components 24. Overall approach. The Project will consist of three components that will assist the MdJL in developing and implementing action plans aimed at improving the quality of service delivery of courts. This Project will be anchored on feedback received from the various target groups and will aim at introducing international best practices for court organization and MdJL's central management and support functions. Accordingly, the Project activities will be implemented both at court level and in MdJL. The learning process at the level of 10 to 12 pilot courts, selected among the judicial districts of the Court of Appeals of Casablanca, Kenitra and Settat, in the 7 Regions of Chaouia-Ouardigha, Grand Casablanca and Gharb-Chrarda-Beni-Hssen ("Project Area") will support the development of broader reform action plans to be implemented throughout the court system. 25. The GoM and the Bank have agreed to design the Project with a limited scope, while retaining the flexibility as to activities that will be financed. To address the fact that the entire court system is undergoing a range of ambitious reforms which might limit the appetite as well as absorption capacity of sector institutions, the Project will addresscourt organization and management; it will not focus on specific issues relating to criminal law, prison administration and administrative courts. As infrastructure issues have already been largely addressed by the MdJL, the Project will not finance the construction of court buildings but only limited space reconfiguration and refurbishment (other than structural rehabilitation, enlargement or expansion) required for the installation of IT systems and the separation of front/back offices inside the pilot courts. 26. While not directly targeted judicial independence and fighting corruption will remain overarching pre-requisites for the achievement of the objectives of the Project (i.e. sufficient assurances of judicial independence are expected to remain in place during implementation). The enactment and implementation of the previously mentioned two organic laws (i.e. CSPJ and professional status of judges) will be key to ascertain the achievement of the objectives of the new Constitution in this area. Reducing corruption is an indirect objective of Components 1 and 2 through activities that reinforce transparency/accountability. Component 1 - Improving Court Performance in the Project Area (EUR 7.4 million) 27. The objective of this component is to have a direct impact on the quality and efficiency of service delivery by the courts. The main subcomponent focuses on the preparation of court performance improvement plans (PAPJs) following a participatory approach involving key stakeholders in the Project Area. Each PAPJ will have to address four strategic objectives set by the Ministry of Justice: (a) modernizing court management and organization; (b) standardizing application of procedures and reducing delays in processing cases; (c) improving regular interaction with court users, including notably a gender perspective that aims at removing gender-specific barriers to justice 6, and (d) developing specific solutions to local issues (see Table 1 in Annex 2). The PAPJs will inform an Annual Reform Strategy (SRA) which will gradually be expanded based on the outcome of the solutions tested in pilot courts. The two other sub-components aim at organizing a functional separation between a "front office" and a "back office", and upgrading and developing critical ICT tools that will allow systematizing and automating jurisdictional and administrative processes in the pilot courts. Under this component, the Project will finance the following: 6 The gender perspective of the PAPJs will be developed taking into account the results of the ongoing initiatives sponsored by UNIFEM, UNDP and UNICEF that focus on improving the performance of selected family courts. 8 28. Sub-component 1.1 (EUR 3.7 million) - Provision of non-consultants' services, goods and consultants' services, including training for improving the court administration and case management through, inter alia: (i) selecting pilot courts from the Casablanca, Kenitra and Settat judicial districts located in the Project Area to develop court performance improvement plans (PAPJs) according to the criteria and procedures described in the Project Operational Manual (POM); (ii) conducting court users surveys in the selected pilot courts; (iii) identifying the issues and options of PAPJs through a participatory approach in the selected pilot courts; (iv) disseminating best international practices relevant for PAPJs through workshops; (v) structuring of PAPJs and annual reform strategies (SRAs) including monitoring and evaluation mechanisms and indicators; and (vi) assisting in the implementation of the PAPJs and SRAs activities in the selected pilot courts. 29. Subcomponent 1.2 (EUR 0.6 million) - Provision of small refurbishment works, non- consultants' services, goods and consultants' services, including training for reengineering of administrative processes for improved service delivery through, inter alia: (i) assessing current organizational structures for providing services in the selected pilot courts; (ii) designing new service delivery processes by rationalizing court organization based on the separation of the "front office" and "back office" functions; (iii) drafting an operation manual detailing the handling of all administrative tasks related to justice services delivery; (iv) providing training to staff of the selected pilot courts regarding the use of the new service delivery procedures; and (v) limited space reconfiguration and refurbishment (other than structural rehabilitation, enlargement or expansion of existing buildings) inside the selected pilot courts' buildings for implementing the new service delivery processes and court layout. 30. Subcomponent 1.3 (EUR 3.1 million) - Provision of non-consultants' services, goods and consultants' services, including training for the development of innovative court ICT applications through: Subcomponent 1.3.1 - Revamping of Automated Case Management Systems (CMSs), including inter alia: (a) assessing current procedural rules and milestones to determine the causes of recurrent delays and congestion, and identifying possible solutions, including the improvement of the CMSs already operational; (b) upgrading the existing CMSs for effective monitoring and control of case status requests and pending judicial deadlines; (c) training court personnel to ensure effective use of the upgraded automated CMS and procedures; and (d) ensuring that the new upgraded CMS generates reliable statistics on court performance in the selected pilot courts, and is gradually expanded to other courts. Subcomponent 1.3.2 - Development of additional ICT applications identified under the ICT Strategic Plan, including inter alia: (a) developing an electronic filing program allowing externally-originated documents to be added to the existing file; (b) developing an information system by extending the 9 connectivity between the central and regional court offices (intranet) in order to improve the effective communication of policies, practices and procedures; (c) allowing user access in real time to a central registry for collaterals registered in the commercial registry; and (d) enhancing digital systems for archiving electronic court records so as to improve access to court records using electronic retrieval methods, and to reduce physical space for storage of court records. Component 2 - Up$radin$ the Strategic Planning and Management Capacities of the MdJL (EUR 3.7 million) 31. The objective of this component is to improve the MdJL's capacity to monitor the performance of the courts and provide them with adequate support, in particular to attain the strategic objectives of Component 1. As such, this Component will provide support to the MdJL's Directorates entrusted with a cross-support function, and to the Superior Judicial Training Institute (ISM): (a) sub-component 2.1 will assist the Office of the Minister and the Secretary-General of MdJL in fulfilling their coordinating and strategic planning functions; (b) sub-component 2.2 will assist the Budget and Control Directorate in implementing the performance budgeting framework resulting from ongoing reforms of Morocco's budget reform; (c) sub-component 2.3 will assist the Human Resources Directorate and the ISM in furthering their strategic approach to staffing, promotion and skills development; (d) sub-components 2.4 and 2.5 will assist the Statistics, ICT and Communications Units of the Directorate for Studies, Cooperation and Modernization (DECM); and (e) sub-component 2.6 will assist the newly created Directorate for Legislative Reform in developing methodological tools for improving legal reforms. Under this component, the Project will finance the provision of non-consultants' services, goods and consultants' services, including training for: 32. Sub-component 2.1 (EUR 0.5 million) - Strengthening of the MdJL's Planning, Coordination and Control Capacity, through, inter alia: (i) reviewing internal policies and procedures of MdJL; (ii) selecting appropriate job profiles for the revised planning, coordinating and control functions and responsibilities of MdJL's central services; (iii) developing a performance and productivity assessment framework for central services; and (iv) developing effective information tools among MdJL directorates and units for policy-making purposes. 33. Sub-component 2.2 (EUR 0.6 million) - Developing Strategic Budget Planning through Performance-based Budgeting by, inter alia: (i) identifying performance objectives, indicators and targets; (ii) developing and implementing an action plan for the MdJL's strategic budget planning; (iii) developing and implementing a training plan addressing the different dimensions of the budget reform with workshops in each judicial district, and an annual seminar with participants; and (iv) strengthening the budget and financial management capacities of the various units involved in the expenditure management process. 10 34. Sub-component 2.3 (EUR 0.5 million): Supporting the Human Resources development of the MdJL through the following: (i) designing and implementing standard performance evaluation mechanisms and parameters for court staff and establishing new M&E mechanisms to improve performance; and (ii) designing specific training modules for the MdJL and the ISM to disseminate best practices in the field of court management and performance, and to support the implementation of the PAPJs by the selected pilot courts. 35. Sub-component 2.4 (EUR 0.7 million) - Strengthening of M&E tools for court performance through the following: Subcomponent 2.4.1 - supporting the MdJL in developing an upgraded system that would ensure court statistics are appropriately collected, analyzed and disseminated by, inter alia: (a) reviewing the existing judicial statistics system and its implementation in the pilot courts; (b) upgrading and designing a statistical system with manual procedures and computerized applications compatible with the CMSs; and (c) assisting the selected pilot courts in the implementation of the new data system to ensure they generate reliable statistics about court performance, and assist in gradually expanding this system to other courts; and Subcomponent 2.4.2 - supporting MdJL to develop an ICT Strategy for court performance by, inter alia: (a) preparing short to medium-term ICT action plans; (b) reformulating the MdJL's policies on technological standards; and (c) assisting MdJL in supervising the implementation of the short to medium-term ICT action plans and new policies on technological standards. 36. Subcomponent 2.5 (EUR 1.0 million) - Improving MdJL's communications with users and citizens through the following: (i) improving the MdJL's communication strategy; (ii) providing training on communication techniques for MdJL's relevant units; (iii) carrying out workshops, training activities and publications for civil society, the private sector and the general public, and awareness campaigns about justice sector issues and citizens' rights; (iv) designing and implementing specific communication plans and activities in the selected pilot courts, linked with PAPJs and SARs; and (v) undertaking nationally representative surveys aimed at assessing perceptions about justice services throughout the country, and access to and use of the court system in Morocco. 11 37. Sub-component 2.6 (EUR 0.4 million)- Strengthening the capacities of the MdJL to prepare draft laws and regulations and to disseminate laws and regulations and case law through, inter alia: (i) developing a strategy and methodology for: (a) identifying legal reform needs relevant for improving court performance; (b) laying out reform options and assessing their impact; (c) implementing a consultative process with stakeholders; and (d) preparing judicial reforms; (ii) supporting the implementation of the strategy and methodology adopted through the development of ICT applications, training and workshops; and (iii) reviewing and updating the tools for disseminating laws, regulations and judicial decisions. Component 3: Project Management, Monitoring and Evaluation (EUR 0.87 million) 38. The objective of this component is to support the MdJL's capacity to manage, monitor and evaluate Project activities. As such, this Component will provide support to the UGP responsible for coordinating day-to-day Project activities and administering loan funds. The UGP will be headed by a MdJL staff appointed by a decision of the MdJL and will report to the Secretary General of the MdJL. The UGP will also include MdJL staff from the DECM and will be physically located in the offices of the DECM. The UGP will also comprise MdJL staff assigned from other key MdJL Directorates, in particular the Budget Directorate. Finally, the UGP will comprise external experts hired to fulfill the position of project coordinator/monitoring and evaluation specialist, procurement specialist and project assistant. 39. Under this component, the Project will finance the provision of provision of goods, consultants' services and training to the Project Management Unit (UGP) for the implementation and monitoring and evaluation of the Project. B. Project Financing i. Lending Instrument 40. The Investment Loan (IL) instrument was agreed with Government as being the most appropriate instrument as it was consistent with the technical assistance focus of the Project. Initially a Development Policy Loan (DPL) was considered, but this option was left for future support (see below) as Morocco is developing a broader policy framework for legal and judicial reforms. 41. A Technical Assistance Loan (TAL) was also considered as it would have helped to build institutional capacity. However, a TAL would have been too narrow as it would not have allowed sufficient investments to implement the modem physical design for delivery of administrative services by courts, and to support the development and revamping of ICT systems in the courts. 42. The possibility of supporting Morocco's justice reform program through a series of DPLs designed as a programmatic, multi-year development policy lending could be considered in the near future. Providing a DPL as part of future Bank support remains an 12 option but would only be considered once there is a robust reform program with clear objectives and indicators in place. Hence, the preferred option for the Bank and the Government was the IL approach. This choice was motivated by the success of the previous IL implemented between 2000-2004 to support the development of CdCs. Bank assessments have confirmed the need to focus on identifying performance flaws at court level, design concrete actions plans and implement activities that are supported by local stakeholders. Such a "bottom-up" approach entails implementing activities that are not immediately visible, take time to prepare, and require often complex consultations with stakeholders. It is hoped that this bottom-up approach would then assist in the development of a well-grounded reform program that could eventually be supported by a DPL. ii. Project Cost and Financing Project Cost IBRD % Project Components Description of Components Estimates (EUR) Financing Financing Total Component 1 Improvement of court administration and Improving Court Performance case management 3.7 Reengineering of administrative processes 0.6 for improved service delivery Development of innovative court ICT 3.1 applications Sub Total Component 1 7.4 7.4 62% Strengthening of MdJL's planning, 0.5 Component 2 coordination & control capacity Strategic budget planning 0.6 Upgrading the strategic Human resources development 0.5 planning & management Strengthening of monitoring and evaluation 0.7 capacities of the MdJL tools for court performance Improving communication with users and 1.0 citizens Modernizing of legal drafting and 0.4 dissemination of laws and case law Sub Total Component 2 3.7 3.7 31% Component 3 0.87 Project Management, Management and Project Monitoring Monitoring and Evaluation Sub Total Component 3 0.87 0.87 6.75% Front-End Fee 0.03 0.03 .25% Total Project Costs 12 100% 100% 13 Expenditure Amount estimated in % Millions of EUR Works 0.48 4% Goods 0.48 4% Consultants' services and 11.01 91.75% training training0.03 0.25% Front-End Fee Total Financing 12 100% Required C. Lessons Learned and Reflected in the Project Design 43. The introduction of automated systems has become a critical element of justice reform programs. These experiences have shown that effective automated systems: (a) streamline manual processes, and establish milestones and performance indicators; (b) phase-out manual processes as automated systems become operational; (c) track how cases move through the court system; and (d) connect CMSs with other court management functions, in particular human resources and financial management. Under Subcomponent 1.3, this Project will conduct solid pilot testing in a small number of locations, and will follow the "multiple waves" approach (i.e. rolling-out only one application at the same time in a given number courts at the same level) avoiding the high costs and risks of rolling-out all applications in the entire court system. 44. Separation between administrative and jurisdictional functions has become standard in modern justice institutions. Experience in OECD countries has shown that the establishment of new functions or the shifting of responsibilities may be a challenging undertaking that requires cost-benefit analyses and consensus-building. Roles and responsibilities of non-judge staff can vary widely and requires to clearly identify which functions are really needed, and how the required capacities can be established. As part of the PAPJs developed under Subcomponent 1.1, each pilot court will review staff functions and processes in search for a clear allocation of responsibilities. 45. Implementation of justice reform projects requires continued consultation with key stakeholders, especially targeting women to be better integrated into consultations. A demand-driven approach that involves broader communities in the definition of improvements to core court services throughout project implementation has been used in countries such as Australia, Canada, the Netherlands, the US, and the UK. In preparation for this Project, in-depth consultations in selected courts were carried out to build trust in the reform process. This consultative process will continue during the implementation of the Project and a gender- sensitive outreach will also be pursued when preparing the PAPJ. 46. Strategic planning is a critical element for justice reform projects. Strategic planning exercises should be comprehensive and inclusive processes that define the overall goals for the justice sector at large. Strategic planning should lead to a shared vision for the future of the sector, its agencies and the services they deliver to citizens, supported by inter-institutional agreements on current needs and realistic priorities for achieving this vision. As sufficient 14 information is essential to assess gaps, and identify alternative models, this Project will provide the required support to MdJL under Subcomponents 2.1 and 2.2. 47. Structure the Project around a problem-solving strategy and engage all the actors required to implement a proposed solution. One of the main lessons learned from justice reform projects is that demands for assistance should be processed under a problem-solving framework that looks at the functions to be improved and the services to be delivered. Accordingly, a central activity of component 1 of the Project will be the preparation and implementation of the PAPJs, which will be designed by involving all the main actors at court level in a problem solving exercise. 48. Flexibility during implementation is critical, especially in an uncertain governance environment. Justice sectors are typically affected by a broad and complex set of internal and external variables, which are difficult to fully address at the design stage. While reform projects should be highly explicit in their stated goals and strategies, they should also have flexibility to accommodate unforeseen situations by adapting project activities to new opportunities to advance deeper reforms. That flexibility will be built-in for this Project through the periodic updates to the MdJL's annual operating plans (AOPs). 49. Financing of limited physical infrastructure may reinforce institutional reforms when it is closely linked to internal process reengineering. The absence of suitable facilities for court operation is a major obstacle to the judiciary's chances of providing adequate services, in particular for vulnerable communities. Dilapidated facilities may delay organizational changes, internal communication improvements, and the ICT systems' upgrading. The financing of limited remodeling/refurbishment of courts buildings under Subcomponent 1.2 of this Project will support the separation of front/back offices, which is expected to improve work processes and increase operational effectiveness. 50. Select relevant impact and performance indicators with the appropriate monitoring and evaluation tools. Justice projects have faced the challenge of identifying the right set of impact and performance indicators, baseline statistics, and monitoring and evaluation mechanisms to collect the required information from the Project's outset, plus an agreed reporting schedule. This Project has defined improvement of judicial performance both in quantitative and qualitative terms, as the internal and external perceptions about change are often as important as the change itself. Measures of qualitative improvements will be articulated through user surveys under Subcomponent 1.1 as well as through the development of a reliable statistical system. 51. Develop a communication strategy to ensure the Project is seen as a vehicle of change. The communication strategy proposed under Subcomponent 2.5 will position the proposed reforms as a public policy issue, provide periodic information on the progress of the reform efforts, and generate demand for transparency. Surveys of citizens and users - ensuring appropriate representation of women - will be an effective tool to monitor the results of this strategy. 15 IV. Implementation A. Institutional and Implementation Arrangements 52. The Project will be implemented by MdJL, with the CdST acting as the supervising authority. A CdST and a UGP will be set up by the MdJL. The CdST will be in charge of coordinating and monitoring activities between various stakeholders. To this effect, it will be composed of representatives of the core MdJL Directorates and decentralized units involved in the Project, such as the pilot courts and the regional Sub-Directorates of the Judicial Districts covered by the Project. It will be chaired by the Secretary General of the MdJL or by a director of the central administration appointed by the Secretary General. The CdST will meet upon request of its president as many times as necessary and at least four times a year. The task of the CdST is to facilitate/supervise the implementation of Project activities. More specifically, the CdST validates the draft PAPJs and SRA prepared under component 1 and submitted by the UGP. It facilitates the coordination of the main actors and builds consensus. It will examine and approve the progress reports, and will post periodic monitoring and evaluation reports in the Project website for comments. It will also review and endorse the draft AOP for each year of Project implementation. 53. The Project Management Unit (UGP). The UGP will be responsible for coordinating day-to-day Project activities and administering loan funds. It will ensure that all financial management and procurement functions are performed in accordance with the provisions of the Loan Agreement. The UGP will be headed by a MdJL staff appointed by the Minister and will report to the Secretary General of the MdJL. He/she will be in charge of supervising and monitoring the UGP in the performance of its respective tasks. The UGP will receive support from the DECM and will be physically located in the offices of the DECM. The UGP will also comprise staff assigned from other key interested Directorates from the MdJL (Civil affairs, Criminal Affairs, Commercial Affairs, Budget, Human Resources, Infrastructures and Equipment) that will actively support its mandate, in particular the staff from the Budget Directorate that will act as the financial management expert for the Project. Finally, the UGP will comprise external experts hired to fulfill the position of (i) Project coordinator/monitoring and evaluation specialist, (ii) procurement specialist and (iii) Project assistant. The hiring of said experts is a Condition of Project Effectiveness. If neededthe Project will hire a financial management specialist to assist the staff of the MdJL assigned to fulfill this function. 54. A specific institutional and operational framework will be established for activities involving pilot courts under Project component 1.1. The Project will assist in establishing at least one local working group and/or task force at the level of each pilot court, the exact number to be determined in conjunction with local stakeholders based on the size of each pilot court. It is envisioned that the local operational framework will comprise: (a) a local committee for improving the delivery of justice services (Comite d'Amelioration de la Performance - CAP) that will bring together the representatives of key public and private stakeholders (court presidents, royal prosecutors, chief clerks, representatives of the local Bar, representatives of the bailiffs, notaries, experts, municipal council, police, etc.); and (b) thematic working groups that will be bring together judicial stakeholders, users and non-users of the judicial system to prioritize issues, devise solutions, and structure a PAPJ. 16 55. The ISM, a legally independent agency, will be a beneficiary of the Project. In view of its legal status as an autonomous agency, a partnership agreement will be set up between the MdJL and the ISM to specify their respective roles and responsibilities in the implementation of activities aimed at improving the training capacity of the ISM and providing specific training to judicial stakeholders to disseminate best practices in the field of court management and performance, and to support the implementation of the PAPJs by the selected pilot courts. In addition, some discrete project activities may potentially involve the CSPJ once it is established and its responsibilities are determined. Submission of the Partnership Agreement to the Bank is a Condition of Disbursement for this part of the Project. B. Results Monitoring and Evaluation 56. The Monitoring and Evaluation (M&E) system will be based on the agreed Results framework and monitoring arrangements (See Annex 1). The UGP will be responsible for supervising the M&E activities at component level, and the CdST at PDO level. The contractor selected by the UGP for Component 1.1 will be in charge of developing an M&E framework for Component 1. Indicators were selected considering that this Project is a seminal experience in Morocco and MENA. As a consequence, it was important to be modest and realistic about what can be measured (and how) so as to ensure that the MdJL and the pilot courts could commit to reaching particular targets. 57. Perception-based indicators will be detailed after conducting initial surveys aimed at establishing baseline indicators among the general public and users of the pilot courts of the Project. Progress in achieving outcomes will be measured through the publication of regular performance monitoring reports. The format for these reports will be developed by the Project and the baseline for each pilot court established in year 1 of implementation. Only limited use will be made of "perception-based" indicators, in particular those based on general public perceptions as experience has shown that they tend to be swayed by media reports or anecdotal information, and are not reliable sources to measure court performance . Perception indicators will be used only about specific areas of court performance for which baseline data will be captured at the inception and can be tracked throughout the life of the Project by user surveys. Perception-based indicators for the general public will only be used to measure the impact of public education campaigns on the citizens of the judicial districts of the pilot courts. Generally, the Project will use perceptions indicators with caution, as a proxy for institutional performance issues that cannot be measured directly (i.e. quality of service delivery). C. Sustainability 58. One of the underlying objectives of the Project is to establish a sustainable reform process in the Justice Sector. This objective will be attained by establishing progressively a "bottom up" approach to reform, which takes into account the views and diagnostics of local stakeholders, rather than merely relying on specialists at the center of Government, as has been 7 Too many intervening factors could influence general public perceptions and progress with court reforms may take a long time (sometimes more than 20 years) before changes in such perceptions began to be recorded in surveys. More reliable surveys of recent court users are better gauges of progress injustice projects. 17 the case so far. Consultations show that this approach has the commitment of the MdJL and the beneficiaries, which is essential for sustainability. GoM commitment to the Project goals can be seen through the close fit of the Project with broader strategic goals related to providing justice services to the citizens and fighting corruption. Project beneficiaries will be closely involved in determining "how to" that will be applied by the working groups at court level. Moreover, new equipment and infrastructure work in the pilot courts should be maintained easily, in particular as the pilot courts are selected from among courts that have already been renovated and whose capacity to maintain infrastructures has already been upgraded. 59. Stakeholder involvement. The support of specialized non-governmental organizations will be crucial for the sustainability of the Project. The "Amicale Hassania", an association of reform-oriented judges, the Young Lawyers Association, and the union and the association of court clerks will be involved in the design and implementation of activities envisaged under the Project. The confederation of Moroccan companies (CGEM) has developed bold proposals for justice reform which are relevant for the functioning of the pilot courts. Also, bailiffs have recently created a professional body which will be an important partner in addressing remaining obstacles to the enforcement of judgments. Finally, average citizens will participate in surveys and the development of proposals for improved service delivery at court level and the project will ensure that women are sufficiently represented in these surveys to ensure their credibility. V. Key Risks and Mitigation Measures A. Risk Ratings Summary Stakeholder Risk High (H) Implementing Agency Risk - Capacity High (H) - Governance Moderate (M) Project Risk - Design Moderate (M) - Social and Environmental Low (L) - Program and Donor Low (L) - Delivery Monitoring and Sustainability High (H) Overall implementation risk Moderate (M) B. Description 60. Stakeholders perception and expectation. The high level of public expectation regarding justice reform and overall perception of corruption in the justice sector could prove an impediment to the success of the targeted approach of the Project. This perception will be addressed by the Project through systematic engagement of relevant stakeholders (including the users of the justice sector) at the level of the pilot courts, through communication campaigns and 18 by developing a better monitoring and evaluation system for managing the courts, a key activity of the Project. 61. Centralization of decision-making process in MdJL and lack of ownership of judicial stakeholders. The MdJL is highly centralized, thereby reducing the efficiency of the decision-making process. This weakness may have a negative impact on Project implementation. Involvement of judicial stakeholders into decision-making processes is currently limited, and various legal professionals and other stakeholders may be resistant to change. To minimize this risk, the Project will be implemented following a participatory approach, involving all relevant stakeholders. Criterias for selecting pilot courts include the willingness and commitment to reform of court leadership (Court President and Chief Prosecutor notably). Finally, the Project will incorporate third party monitoring to ensure unbiased assessment of court performance. 62. Weak capacity of MdJL's staff. MdJL's staff capacity in critical areas (planning and general court management, financial management, procurement, monitoring & evaluation) remains weak and could generate delays. Accordingly, the project will support the capacity of the UGP under component 3, and each of components 1 and 2 will be supported by a main contractor in charge of assisting the MdJL in addressing technical issues and coordinating the various stakeholders involved in the related activities. These contractors will focus on operational areas and will also be in charge of capacity building for implementation of Project activities. Training will be provided to all stakeholders under the Project. 63. MdJL has limited experience with the Bank's procurement and financial management procedures, but has experience in managing large donor projects (e.g. EU project). The Project will build on MdJL's previous experience while adapting it to Bank's policies and procedures. Accordingly, the recommendations of the procurement/financial management assessments will be implemented and a Project Operational Manual (POM) will be developed to avoid delays and ensure consistency of the approach among various units of MdJL involved in Project implementation. The Manual will detail the financial management and procurement arrangements based on Bank's guidelines. A public procurement specialist will be hired externally and be a key member of the UGP. Adoption of the POM by MdJL is an Effectiveness Condition of the Project. VI. Appraisal Summary A. Economic and Financial Analysis 64. Improved delivery of justice services will generate significant benefits for Moroccan institutions and society at large. Component I will improve the quality, timeliness and reliability of judicial decisions, thereby facilitating an improved private sector decision-making environment. Component 2 will improve the effectiveness of resource administration by the MdJL and ISM, thereby allowing the authorities to redeploy resources where justice services demand is higher. Efficiency gains are expected from the strengthening of financial and human resources management, and anticipated improvements in the efficiency of personnel allocation, since the organizational restructuring of the Judiciary will provide the authorities with an opportunity to identify and eliminate duplication in functions and responsibilities. No fiscal 19 impact is expected. In-kind incentives for judges and judicial officials will be provided through training and greater decision-making opportunities as a part of Project activities. No incremental personnel will be hired to staff the MdJL or the pilot courts. Existent professional staff will be reassigned as needed. B. Technical 65. The proposed Project components are technically sound and viable. Project design is comprehensive, yet also flexible enough to effectively address the diverse set of institutional development problems identified. It is built on extensive consultations, reviews of previous studies (including Bank assessments), and diagnostic studies and modernization plans developed during Project preparation with Bank and donor assistance. Institutional improvement, organizational culture change, knowledge management, process reengineering, community participation and outreach, and transparency/accountability initiative are part of the proposed Project. A key factor will be the involvement of stakeholders in the design and implementation of solutions, by encouraging participatory learning-by-doing techniques. 66. The Project will rely on international tools to assess court performance issues and options. A number of assessment tools have been developed recently by international bodies, which will be used and adapted to the Moroccan context to raise the awareness of pilot court stakeholders on elements of performance and quality, and identify potential areas for improvement. During Project preparation, a test assessment was conducted locally using tools developed by the European Commission for Court Efficiency (CEPEJ) to introduce participants to the concept of Quality of Justice or to assess stakeholder perceptions. These tools include checklists for promoting the quality of justice in the Courts, and time management, and questionnaires for lawyers and court users (parties, lawyers, witnesses, etc.). Other international tools may be considered, as appropriate, such as the International Framework for Court Excellence (IFCE)8 and the National Center for State Courts (NCSC) developed in the United States9. 67. Transparency and accountability of the judicial system at large and of individual officials in particular will be a key cross-cutting theme, supported by ICT solutions. The technical work supported by Component I will be complemented with external, independent oversight to ensure sustained performance. Thus the automation subcomponent will reinforce mechanisms of judicial oversight by MdJL and external stakeholders. For instance, traditional areas of complaint such as notifications and the non-enforcement of decisions will be better tracked through ICT applications. Automation will also reduce opportunities for corruption- related inefficiency in areas such as assignment of cases and scheduling of hearings. The possibility of developing ICT links with Executive agencies that share responsibility for certain 8 The IFCE, inspired by approaches developed in Australia, Europe, North America and Singapore, was launched in 2008. It allows the assessment of court performance against seven excellence criteria. These criteria are based on commonly accepted court values such as equality, fairness, impartiality, independence, competence, integrity, transparency, accessibility, timeliness and certainty. The IFCE uses a balanced scorecard to facilitate self- assessments. It acknowledges that the effective implementation of improvement initiatives is a gradual process which requires the collection of data measuring both quantity and quality of justice services provided. 9 http://www.ncsc.org/Information-and-Resources/High-Performance-Courts.aspx 20 services (taxes, land registration, powers of attorney) will be explored. Finally, one of the key activities under Component 1.3 will be the development of an ICT link for the public/lawyers as a mechanism for allowing easier access to case information (judge assignment, hearings schedule, etc) to lawyers and parties. In Morocco and other countries such a Jordan, one of the primary causes of physical congestion at courts is the users' following-up on the status of their cases - online access to this information may relieve considerable stress from court administrative staff. 68. The possibility of working with a broader range of courts was considered and rejected. The strategic choice was made to maintain the Project focused on a limited set of pilot courts concentrated in high-impact geographical areas, to set the ground for further reforms and avoid overstretching the limited capacity of a court system undergoing rapid change. The Operational Manual will specify eligibility criteria for the addition or substitution of pilot courts during Project implementation. 69. The focus of the Project will be on improving court performance while reinforcing judicial independence in line with the new Constitution. The new CSPJ will have different functions and responsibilities from the existing CSM. The powers of the new CSPJ are broadly described in the Constitution, and an Organic Law will determine the exact extent of these powers. Stakeholders met during project preparation believe that new Organic Law will most likely not entail any major reorganization of the judiciary but rather a targeted strengthening of the independence of the judiciary. As a consequence, it is expected that the change from the CSM to the CSPJ probably will have only a minimal impact on the activities supported by the project. C. Financial Management 70. The financial management system, including necessary arrangements to address Project needs satisfies Bank requirements. The financial management system was appraised to ascertain compliance with the requirements of OP/BP1O.02. The financial management evaluation of MdJL covered the areas of accounting and financial management, as well as the reporting and auditing processes applicable to the Project. The assessment concluded that the MdJL has sufficient capacity to manage Project financial matters and administer loan funds.10 Financial management responsibilities will be entrusted to the UGP, including project budgeting, payment, accounting and reporting. The financial management inherent risk for the country, the entity and the Project is considered low. Disbursements will be handled through the Ministry of Economy and Finance (Ministere de Economie et Finances - MEF) following established procedures. 71. Interim unaudited financial reports will cover all the activities and sources of funds of the Project. They will be prepared biannually by MdJL and transmitted to the Bank within 45 days after the end of each period. 10 MdJL is planning to establish an internal audit unit. 21 72. The external annual audit report of the Project accounts and the management letter covering recommendations to improve the internal controls and the accounting system will be transmitted by MdJL to the Bank no later than six months after the end of each exercise. Moreover, the annual audit report of the Project accounts will be carried out in accordance with the Bank guidelines by an acceptable auditor and according to terms of reference acceptable to the Bank. Financial flows will come from the loan account open in the Bank. Flows of funds between the Bank and MdJL will be organized according to normal disbursement procedures of the Bank. D. Procurement 73. Procurement will be conducted for the selection of consultants for technical assistance, for Goods and non consulting services (e.g. ICT equipments and networks) and minor civil works. The UGP will be in charge of the implementation of the Project. At the decentralized level the sub-directorates of the MdJL in the targeted areas will also be involved in the implementation of Project activities. The capacity assessment carried out during Project preparation showed that the MdJL does not have experience in implementing Bank projects in recent years and thus staff in place has limited experience in Bank procurement procedures, even though the MdJL benefitted from other donors support in this period (e.g. USAID, EU, UNDP). 74. The overall risk for procurement is considered substantial. This risk level results from: (a) the lack of experience in Bank procedures of MdJL's staff working directly on Project implementation; and (b) the absence of training in Bank procurement procedures provided to MdJL's staff. To mitigate this risk and facilitate Project implementation the following measures are recommended: (i) a well-tailored training program for MdJL staff, including the UGP, before Project Effectiveness; (ii) recruitment of an individual consultant to carry out the procurement specialist function within the UGP11; (iii) the preparation of Standard Bidding Documents (SBDs) for National Competitive Bidding (NCB) acceptable to the Bank; and (iv) preparation of an Operational Manual for the Project, with a detailed procurement section. More details are provided in Annex 3. E. Social (including safeguards) 75. Project design has emphasized the importance of consultations to ensure that the participatory approach that was followed during Project preparation is retained during implementation and meets the expectations of the various stakeholders. Various types of consultations were undertaken during Project preparation, at central and local levels, targeted to various stakeholders such as judicial personnel, lawyers and other professional organizations I During Project preparation it was found that MdJL did not have recent experience with Bank procedures and was agreed to hire a full-time procurement specialist for the UGP who will be responsible for day-to-day procurement tasks and in charge of coaching and mentoring other MdJL staff involved in the Project. From the procurement standpoint, the Bank will follow up closely Project implementation, especially at the beginning, and will provide support through its own procurement specialist in the Morocco country office. 22 such as bailiffs, and civil society organizations involved in judicial reform. These consultations confirmed the general perceptions about the weaknesses of the judiciary in terms of efficiency. 76. To promote the engagement of different stakeholders inside and outside the courts, the Project worked with courts and communities in the selected judicial districts early during preparation. Pilot surveys, using CEPEJ tools, were conducted during preparation, as well as consultations with civil society and confirmed strong support to the Project approach. Participatory/consultative tools used during preparation confirmed not only the commitment of key staff of MdJL but also the strong support from court staff and communities in the selected locations. This consultation process also managed expectations by making clear that the experience from other justice reform programs shows that the full impact of the envisioned reforms may take time to materialize. However, it sets out realistic targets that could be achieved during the Project lifetime in terms of streamlined processes, greater access and community trust. 77. The Project will also support significant participation and consultation events about the reform process during implementation. These consultations will include CSOs and private sector representatives, to complement the views of justice sector officials on service delivery and demand. As the Project seeks to modify the role and responsibilities of judicial stakeholders, it will work closely with the pilot courts in Casablanca, Kenitra and Settat to ensure buy-in. The baseline will be collected by an independent consulting firm. 78. The consultation and participation process will be led by local and international experts with proven ability to engage stakeholders and to provide best practices that are relevant for the Moroccan context. The experts will assist stakeholders in developing the PAPJs with access to international best practices and identify not only the local issues but also effective solutions. TORs will be designed to ensure that these experts operate as "non-invasive" resources that provide information but do not skew the final choices for the PAPJ that must be the result of a local decision. 79. As a particular implementation arrangement for this component, local "user committees" (CAP) will be established. These committees are expected to interact with pilot court officials and other justice sector representatives. Based on the experience of some OECD countries, the possibility of formal agreements with local bar associations on the expected duration of certain kinds of cases and other matters that affect court performance may be explored in some pilot courts. 80. As resistance to change is a common issue detected in justice reform projects, change management becomes a critical tool to engage various stakeholders. While ICT technical design will follow international standards, particular efforts will be made to adapt these technical aspects to the Moroccan reality in a way that a cultural change can be advanced in the shortest possible time in the pilot courts. 81. Citizens will be given a voice in the process of formulating public policy for justice reform. Gender disaggregated users' surveys will be financed under component 1.1 (see details in Annex 2). This Project will work with bar associations, law schools, private sector and academic institutions that have particular interest in the reforms. Coalition-building will also 23 include allies from inside the judiciary, such as judges and court staff. In accordance with the recently announced MdJL's planned debat national initiative, it is foreseen that MdJL will set up a high level public-private committee involving the major stakeholders of the justice sector, from public sector institutions and civil society. To ensure that the Project's activities are aligned with this overarching initiative, the CdST will regularly liaise with this high level committee. F. Environment (including safeguards) 82. The proposed Project is rated Category C for environmental purposes. Under component 1.2 of the proposed operations, civil works consisting of limited space reconfiguration and refurbishment to set up a functional separation between a "front office" and a "back office" inside the pilot courts buildings will take place in some pilot courts. No structural rehabilitation, enlargement or expansion of existing buildings will be carried out. The Safeguard Policy (OP/BP 4.01) relating to environmental assessments has been triggered so as to properly manage the work of contractors and minimize any adverse impacts when such rehabilitation is conducted. The Project will not finance any works in any historical building. A list of the environmental standards that contractors will have to observe when minor works are conducted is included in Annex 3. These requirements will be referenced in the POM. When hiring contractors to carry out minor works, bidding documents and contracts will include specific requirements/guidelines as needed to be followed in order to avoid any potential adverse environmental impact. 24 Annex 1: Results Framework and Monitoring Project Development Objective (PDO): The objective of the Project is to strengthen the capacity of the Borrower's justice sector to deliver efficient, timely and transparent services to citizens and businesses through: (a) piloting of a participatory reform process involving judges, administrative staff judicial auxiliaries and users in selected courts in the Project Area; and (b) strengthening the institutional capacity of the central functions of the MdJL to better support and monitor the court system. Cumulative Target Values Data Responsibili Description (indicator PDO Level Results Baseli Source/ definition etc.) Inictos*Unit of Measure n R Y R YR Frequency ty for Data Indicators* ne 1 YR 2 YR3 YR 4 Methodolo Collection gy Indicator One: Number and impact 0 0 1 1 2 Every two 2 household DECM - Surveys measuring the impact Increase in the of public awareness years surveys Communicat of the public education awareness of the campaigns during the ion Division campaigns in selected districts public in the selected life of the districts about Project standards of (years 2 and transparency, 4) will competency and measure the effectiveness impact of applicable to the the public justice sector; and awareness their rights and campaigns duties in connection with the justice sector Indicator Two: Percentage of NA 0 50% 60 70 Annual Users' DECM and Surveys in the pilot courts of Service quality. satisfied users in surveys UGP the selected districts Increase in the level pilot courts of satisfaction of users of the pilot courts of the selected districts with the quality, timeliness and effectiveness of access to court services, court files, and information 25 about court procedures as a result of the court performance improvement plans (PAPJs) Indicator Three: % of reduction in 0% 0% 5% 10% 15% Annual Reports DECM - Data generated by the Increase in the number of pending generated Statistical statistical system of the MdJL clearance rate of cases by the Division in connection with the pilot cases in the pilot statistical courts of the selected districts courts of the selected data system districts of MdJL Indicator Four: No. of periodic 0 0 0 1 1 Annual MdJL and MdJL and Report evaluating the MdJL's Increase in MdJL's monitoring reports independent independent capacity to monitor the capacity to monitor consultants consultants performance of the courts and the performance of the allocation of resources courts in terms of according to court quality, timeliness performance and effectiveness, and allocate resources according to court performance INTERMEDIATE RESULTS Intermediate Result (Component One): Improving Court Performance in the Project Area Intermediate Result Strategic 0 0 1 1 1 Once MdJL UGP Strategic objectives and M&E indicator One: The objectives and during document approved by MdJL CdST approves M&E framework Project life strategic objectives document (subject to and a court periodic performance M&E updates, as framework needed) Intermediate Result Number of pilot 0 0 5 5 10 Annual MdJL UGP Periodic reporting on the indicator Two: The courts progress in the SRA and PAPJs are implementation of SRA and 26 satisfactorily PAPJs by pilot courts implemented in the pilot courts according to the M&E framework Intermediate Result Number of pilot 0 0 5 5 10 Annual MdJL UGP Periodic reporting on the indicator Three: courts progress in the New physical layout implementation of new for access to court physical layout in pilot courts services is fully operational in pilot courts Intermediate Result Number of pilot 0 0 5 5 10 Annual MdJL UGP Periodic reporting on progress indicator Four: courts in the implementation of Automated Case automated case management Management System systems by pilot courts (CMS) satisfactorily implemented in pilot courts Intermediate Result Number of pilot 0 0 0 5 10 Annual MdJL UGP Periodic reporting on progress indicator Five: courts in the implementation of Electronic archiving electronic archiving and filing and filing system systems by pilot courts established and operational Intermediate Result Central collateral 0 0 0 0 1 Once at the MdJL UGP and Final report on the indicator Six: Central information system end of the independent establishment and operation collateral Project consultant of the central collateral information information system established and operational to be accessible online in real time by users Intermediate Result Single MdJL- 0 0 0 0 1 Once at the MdJL UGP and Final report on the indicator Seven: Courts information end of the independent establishment and operation 27 Information system system Project consultant of the MdJL-Courts connecting MdJL information system and the pilot courts is established and operational Intermediate Result (Component Two): Upgrading the Strategic Planning and Management Capacities of the Ministry of Justice and Liberties (MdJL) Intermediate Result MITEF 0 0 0 1 2 Twice in MdJL UGP and Structuring of annual budget indicator One: the second independent around the updated METF MdJL's annual half of the consultant budget structured Project around the updated MTEF Intermediate Result Standard 0 0 0 0 1 Once at the MdJL UGP and Final report on the indicator Two: performance end of the independent development and operation of Standard evaluation system Project consultant the standard performance performance evaluation system evaluation system developed and operational for court personnel Intermediate Result A training plan to 0 0 1 1 1 Once at the MdJL and UGP and Final report on the indicator Three: support Project beginning ISM independent development and Training plan to activities of the consultant implementation of the training support Project Project plan to support Project activities prepared activities and specific training and specific training modules to support the new modules to support performance management the new performance model of the courts management model of the courts designed and operational Intermediate Result Statistical reports 0 0 0 1 2 Twice MdJL UGP and Two annual statistical reports indicator Four: on pilot courts and during the independent on pilot courts 28 MdJL's upgraded judges performance second half consultant statistical system, of the based on the Project automated CMS, collects and disseminates reliable statistical data on pilot courts and judges performance Intermediate Result ICT medium-term 0 0 0 1 2 Twice MdJL UGP and Evaluation of the ICT indicator Five: ICT strategy during the independent medium-term strategy for medium-term second half consultant improved court performance strategy for of the improved court Project performance adopted and operational Intermediate Result (Component Three): Project Management, Monitoring and Evaluation Intermediate Result Number of 0 2 4 7 10 Once UGP UGP Mandatory operational indicator One: operational (ICR, mid- reports. documents generated with the AOPs, progress documents term Consultant required quality and timing reports, and ICR review) s' reports delivered on time. annual Annual reviews and (AOP); mid-term review semestrial carried out on time. (progress reports); 29 Annex 2: Detailed Project Description 1. Component 1: IMPROVING COURT PERFORMANCE IN THE PROJECT AREA (Estimated cost: 7.4 million Euros) 1. Overview: This Component will have a direct impact on the quality and efficiency of service delivery by the courts. The main subcomponent focuses on the preparation of court performance improvement plans (PAPJs) following a participatory approach involving key stakeholders in 10-12 pilot courts in the judicial districts of Casablanca, Kenitra and Settat. This activity will take into account the outcome of the national dialogue for justice reform launched by the MdJL. Each PAPJ will have to address four strategic objectives set by the Ministry of Justice: (a) modernizing court management and organization; (b) standardizing procedures and reducing delays in processing cases; (c) improving regular interaction with court users, and (d) developing specific solutions to local issues (see Table 1). These PAPJs will inform an Annual Reform Strategy ((Strategie de Reforme Annuel) (SRA)) adopted by the MdJL. The content and scope of the SRAs will gradually expand based on the outcome of the solutions tested in pilot courts. While ensuring a coherent approach to key issues faced by the courts, this approach will provide some flexibility to accommodate the diverse institutional needs of the courts. Because the Project will work on organizational issues common to all jurisdictions, it is expected that changes made in the pilot civil and commercial courts will be replicated to other courts. 2. The two other sub-components will support required investments in infrastructure, and information and communications technology (ICT) to support the implementation of the PAPJs. Sub-component 1.2 will provide for limited reconfiguring and refurbishment of office space in the pilot courts' buildings to implement new delivery processes for services organized around a functional separation between a "front office" and a "back office". Sub- component 1.3 will support the upgrading and development of several critical ICT tools that will allow systematizing and automating jurisdictional and administrative processes at court level, and produce detailed statistics on the status of judicial cases. Table 1 - Strategic objectives and issues for improving court performance Court Performance Improvement Plan (PAPJ) Strategic Objectives Key issues to be considered by court stakeholders > Tools and methods for improving management and Modernizing court monitoring, and evaluation of court activities 1 organization and > Organization an sharing of tasks between court management stakeholders for handling court management, case management, and day-to-day interaction with users > Standardizing of case procedures and implementation of Standardizing the automated Case Management System (CMS) 30 2 procedures and > Review of the main civil and commercial procedures reducing delays in responsible for delays in case management: scheduling of processing cases hearings, notification of court decisions, enforcement of judgement, inefficiency of fast track procedures (injonctions, referes), etc. > Targeted reduction in number of pending cases and delays in case management > Transparency and accountability in the provision of Improving services to individuals and companies 3 interaction with (information/communications, forms, service charters) court users including a gender perspective that aims at removing - * 12 gender-specific barriers to justice. > Physical and virtual access to courts. > Relationship with local stakeholders (Bar associations, police, judicial auxiliaries, witnesses, experts, civil society) 4 Developing specific > Areas selected by local stakeholders solutions to local issues Monitoring and Evaluation Framework 1.1 Improving court performance (Estimated cost: 3.7 million Euros) 3. Rationale and objectives. The Project will follow a participatory approach to identify key bottlenecks that prevent efficient service delivery in the pilot courts and favour ownership during implementation of the identified solutions. Major investments have been undertaken during the past decade by the MdJL mostly for upgrading courthouses' physical infrastructure and establishing a national ICT infrastructure. At present, issues in court reform are more structural or organizational, and, e.g. outdated organizational allocation of tasks between court personnel and judges, excessive delays in proceedings due to strict interpretation of court procedures, problems with service of process, delays in execution of judgments, ineffectiveness of existing fast-track procedures. In the absence of objective court performance standards and a structured public-private dialogue, these issues are difficult to characterize and solve: the public blames the court personnel for inefficiency and professional malfeasance, while court personnel complain of weak salaries and excessive workload. Hence, this Project component will ensure that civil society and other judicial stakeholders are involved early in the identification of issues and options at the local, regional and national level. 12 The gender perspective of the PAPJs will be developed taking into account the results of the ongoing initiatives sponsored by UNIFEM, UNDP and UNICEF that focus on improving the performance of selected family courts. 31 4. Selecting Pilot Courts from the Casablanca, Kenitra and Settat judicial districts to develop PAPJs. The Project will ensure that selected pilot courts constitute a representative sample of courts of different levels (first instance, appeals) and different sizes from amongst the courts whose physical and ICT infrastructures have already been renovated by MdJL. Preliminary discussions with MdJL have resulted in the pre-selection of First Instance Courts (TPIs), Court of Appeals (CAs) and commercial courts (CdC) of the Casablanca, Kenitra and Settat judicial districts (only the CdA and TPI of Settat), from which 10 to 12 pilot courts will be selected. The judicial region of Kenitra was identified because its CdA and TPI are already used as model courts by the MdJL to test and implement best practices. The judicial region of Casablanca has been identified in view of its size (more than 60% of the caseload in the whole country), which increases the potential impact of Project activities. The judicial region of Settat was identified in view of its proximity to Casablanca and high priority for the MdJL. The pilot courts will be divided into clusters so as to ensure that the Project remains focused on particular interventions, and the results of the prior cluster are evaluated before moving into the subsequent cluster. The first cluster will include a limited number of TPIs and CdAs in order to test solutions and develop model courts that could then be tested again in other pilot courts. However, the Project will allow flexibility to add, withdraw or replace pilot courts in accordance with the eligibility criteria determined in the POM agreed upon during Negotiations. 5. Conducting court users surveys in the selected pilot courts. The Project will design and implement a structured questionnaire seeking various kinds of feedback from respondents. The questionnaires developed by the CEPEJ for surveying individuals and lawyers will provide the basis for designing a questionnaire adapted to the Moroccan context. The results of these questionnaires will feed the working groups. They will also be used to design a monitoring and evaluation framework to measure the impact of the Project. Gender disaggregated user surveys could include questions such as: the extent to which respondents were aware of their rights, how long the case had been in court, the number of times it had been adjourned, whether the respondent believes there has been unreasonable delay and the apparent cause of delay, whether the respondent was asked for a bribe at the court, whether the respondent had confidence in the integrity and competence of the judge or other court officials, whether the respondent intended to pursue other ways of resolving his case, etc. These questionnaires will allow the respondent to remain anonymous or identify themselves. The Project will also devise a mechanism aimed at processing responses and providing feedback to the public. 6. Identifying the issues and options of PAPJs through a participatory approach in the selected pilot courts. The Project will support the identification of issues and solutions related to the four strategic objectives (court organization, case management, access to justice, and local specific solutions) based on a participatory approach. Stakeholders in the pilot courts will be organized in working groups with the assistance of a professional facilitator, to identify problems, devise solutions, and prioritize reform efforts, within the overarching goal of increasing court performance and quality of service delivery. Practically, it is envisioned that two to four working groups will be established at the level of each court, depending on the local context. Justice sector stakeholders could include: (a) internal stakeholders such as 32 judges, prosecutors, court clerks and administrative staff; (b) justice auxiliaries, such as lawyers, notaries, bailiffs, experts, witnesses; and (c) external stakeholders such as court users, private sector representatives (e.g. chambers of commerce) and non-governmental organizations (NGO) representing citizens and groups interested in justice sector reform. 7. Disseminating best international practices relevant for PAPJs through workshops. The Project will organize a series of workshops to present to the working groups and other interested stakeholders a selection of case studies presenting best international practices relating to the strategic objectives. The objective will be to disseminate innovative practices that have been implemented by courts in other countries, notably in middle income countries and transition countries and test with stakeholders the feasibility of adapting these best practices to the local Moroccan context. The Project will rely on existing case studies developed by the Bank and other donors involved in justice reform. 8. Structuring of PAPJs and SRAs including monitoring and evaluation mechanisms and indicators. The draft PAPJs and proposed activities will be screened and validated by the CdST by applying specific criteria determined in the POM, notably: (i) consistency with the strategic objectives of the Project; (ii) testing of a change in behaviour, organization or procedure that could be replicated to other courts or inform other courts with similar profile and issues (except for activities related to the fourth strategic objectives, which could be court-specific); (iii) success criteria determined in advance; (iv) classification of the activity in terms of relevance, urgency, and potential impact on short, medium or long-terms. Once the first set of PAPJs is designed and implemented, the MdJl will approve the first SRA for improving court performance that will determine priority reform activities based on the lessons learned in the pilot courts. In principle, the first SRA could be adopted by the MdJL during year 2 of the Project and then updated yearly. 9. Assisting in the implementation of the PAPJs and SRAs activities in the selected pilot courts. Due to the potential complexity of preparing PAPJs and SRAs, the Project will provide the pilot courts and working groups with the technical assistance of a consulting firm with a solid track-record in similar exercises. This firm will work at local level and help stakeholders from the selected pilot courts to follow a methodology to prepare a PAPJ. The consulting firm selected under the Project will also provide technical assistance for the carrying out of the PAPJ, including: training, expertise for the drafting of handbooks and guidelines, local events, equipment needs assessments, etc. In principle, no equipment will be financed under this subcomponent except for accessory and essential equipment for the preparation or implementation of the PAPJs. Civil works will not be financed under this subcomponent. 10. Activities to be financed: Provision of non-consultants' services, goods and consultants' services, including training for improving the court administration and case management through, inter alia: - selecting pilot courts from the Casablanca, Kenitra and Settat judicial districts located in the Project Area to develop PAPJs according to the criteria and procedures described in the POM; 33 - conducting court users surveys in the selected pilot courts; - identifying the issues and options of PAPJs through a participatory approach in the selected pilot courts; - disseminating best international practices relevant for PAPJs through workshops; - structuring of PAPJs and SRAs including monitoring and evaluation mechanisms and indicators; and - assisting in the implementation of the PAPJs and SRAs activities in the selected pilot courts. 1.2 Reen$ineerin$ of Administrative Processes for Improved Service Delivery (Estimated cost: 0.6 million Euros) 11. Rationale and objectives. To better channel interactions between stakeholders and court services' providers (i.e. court officials responsible for dealing with user requests, mostly at the clerical level), it is critical to reorganize internal administrative services in pilot courts by developing a modem structure of "front office" and "back office" functions 3. By reorganizing how the user interacts with the courts, this Component will aim at fostering the new culture of a citizen oriented court system. The front office will be the physical location where court officials interact with the users and provide the service requested. The back office will support the activities of the front office and will not deal directly with user requests. This activity focuses on the delivery of court administrative services and will not include major courtroom refurbishment which has already been undertaken by the MdJL in all the pilot courts of the Project. The Project will not finance the construction of court buildings but only limited space reconfiguration and refurbishment (other than structural rehabilitation, enlargement or expansion) required for the installation of IT systems and the separation of front/back offices inside selected pilot courts. 12. Activities to be financed: Provision of small refurbishment works, non-consultants' services, goods and consultants' services, including training for reengineering of administrative processes for improved service delivery through, inter alia: - assessing current organizational structures for providing services in the selected pilot courts; - designing new service delivery processes by rationalizing court organization based on the separation of the "front office" and "back office" functions; - drafting an operation manual detailing the handling of all administrative tasks related to justice services delivery; - providing training to staff of the selected pilot courts regarding the use of the new service delivery procedures; and - limited space reconfiguration and refurbishment (other than structural rehabilitation, enlargement or expansion of existing buildings) inside the selected pilot courts' buildings for implementing the new service delivery processes and court layout. Most physical and ICT infrastructure of the Moroccan courts have been renovated by MdJL with support from the EU MEDA program to facilitate physical access to the courtrooms. This subcomponent will focus on the delivery of court services and, as such, it will not include any courtroom refurbishment. 34 1.3 Development of Innovative Court ICT Applications (Estimated cost: 3.1 million Euros) 1.3.1 Revamping of the Automated Case Management Systems (0.9 million Euros) 13. Rationale and objectives. Moroccan courts have been equipped with either: (a) automated case management software application (Systeme Informatise de Gestion des Affaires - SAJ) developed as part of the EU MEDA Project by MdJL; or (b) an older case management software in the Casablanca courts, and the CdCs, which will be replaced by SAJ. The existing manual case management systems (CMSs) are organized around the civil and criminal codes of procedure which require record-keeping for key case milestones (filing, scheduled hearing, decision, etc.). These manual CMSs remain the foundation of court record-keeping as courts are reluctant to discontinue manual records in the absence of effective enforcement of the automated system. Moreover, the automated system has not optimized or significantly improved the manual processes when it was introduced, as it was implemented intentionally to automate existing processes but not to change them, in order to facilitate its adoption by stakeholders. As a result, the SAJ system has not been effective to monitor and control the performance of the courts, or to provide valuable information to the users. To address this issue, the Project will assist the selected pilot courts in the process of revamping the automated CMs. 14. Activities to be financed: Provision of non-consultants' services, goods and consultants' services, including training for the development of innovative court ICT applications through revamping of the automated case management systems (CMSs), including inter alia: (a) assessing current procedural rules and milestones to determine the causes of recurrent delays and congestion, and identifying possible solutions, including the improvement of the CMSs already operational; (b) upgrading the existing CMS for effective monitoring and control of case status requests and pending judicial deadlines; (c) training court personnel to ensure effective use of the upgraded automated CMS and procedures; (d) ensuring that the new upgraded CMS generates reliable statistics on court performance in the pilot courts, and is gradually expanded to other courts. 14 1.3.2 Development of Additional ICT Applications Identified Under the ICT Strategic Plan (2.2 million Euros) 15. Rationale and objectives. The existing medium-term ICT development plan of the MdJL provides for the development of a number of applications for improving the management 14 The development of this CMS will follow the action plan and standards defined under sub-component 2.5 on judicial statistics. It is also expected that the CMS developed under the Project will be robust enough to generate court performance evaluation data by the Project end, once the main case milestones have been standardized and streamlined. 35 systems of courts. While the CMSs are at the core of court functioning, other applications may be needed to further expand the potential impact of technology for improving service delivery. The Project will finance the development and testing in the pilot courts of a selected number of key applications identified by the MdJL as priority for improved court management and service delivery. The list of priority applications below will be validated by the ICT strategy to be prepared under subcomponent 2.4.2 described below. 16. Activities to be financed: Provision of non-consultants' services, goods and consultants' services, including training for the development of innovative court ICT applications through development of additional ICT applications identified under the ICT Strategic Plan including inter alia: - Developing an electronic filing program allowing externally-originated documents to be added to the existing file.15 - Developing an information system by extending the connectivity between the central and regional court offices (intranet) in order to improve the effective communication of policies, practices, and procedures. - Allowing user access in real time to a central registry for collaterals registered in the commercial registry. 16 - Enhancing digital systems for archiving electronic court records so as to improve access to court records using electronic retrieval methods, and reduce physical space for storage of court records.1 Component 2: UPGRADING THE STRATEGIC PLANNING AND MANAGEMENT CAPACITIES OF THE MdJL (Estimated cost: 3.7 million Euros) 17. Overview: The objective of Component 2 is to improve the MdJL's capacity to monitor the performance of the courts and provide them with adequate support, in particular to attain the strategic objectives of Component 1. As such, this Component will provide support to the MdJL's Directorates entrusted with a cross-support function and the Superior Judicial Training Institute (ISM): (a) sub-component 2.1 will assist the Office of the Minister and the Secretary-General of MdJL in fulfilling their coordinating and strategic planning functions; (b) sub-component 2.2 will assist the Budget and Control Directorate in implementing the performance budgeting framework resulting from ongoing reforms of Morocco's budget reform; (c) sub-component 2.3 will assist the Human Resources Directorate and the ISM in furthering their strategic approach to staffing, promotion and skills development; (d) sub- components 2.4 and 2.5 will assist the Statistics, ICT and Communications Units of the Directorate for Studies, Cooperation and Modernization (DECM); and (e) sub-component 2.6 will assist the newly created Directorate for Legislative Reform in developing methodological tools and advancing pilot legal reforms. E.g. electronic filing by lawyers. 16 Currently, collateral has to be recorded in each of the seven commercial registries of Morocco, as creditors cannot retrieve data from these various registries in a single one-stop-shop. 17 E.g. decisions, judgments, notices, etc. 36 2.1 Strengthenin$ of the MdJL's Planning, Coordination and Control Capacity (Estimated cost : 0.5 million Euros) 18. Rationale and objectives. While the internal organization of the MdJL's was recently modified, MdJL still needs to develop adequate capacity and coordination mechanisms for an efficient interplay among strategic planning, investment programming, resource management, budgeting, accountability and controls. This activity will take stock of the results of other components of the Project to ensure that coordination mechanisms and planning capacity are strategically managed by MdJLis 19. Activities to be financed: The Project will finance the goods, consultants' services and training required to strengthen MdJL's planning, coordination and control capacity by, inter alia: - Reviewing internal policies and procedures of MdJL.19 - Selecting appropriate job profiles for the revised planning, coordinating and control functions and responsibilities of MdJL's central services. - Developing a performance and productivity assessment framework for central services.20 - Developing effective information tools among MdJL Directorates and Units for policy- making purposes. 2.2 Developing Strategic Budget Planning through Performance-based Budetin$ (Estimated cost: 0.6 million Euros) 20. Rationale and objectives. Morocco has engaged in a broad reform to modernize its budget planning and management, notably through the adoption of performance-based budgeting. Building on nearly ten years of pilot testing, a new organic budget law is currently under preparation and will be submitted to Parliament. The MdJL was part of the pilot and developed a Medium Term Expenditure Framework (MTEF), in which it has allocated resources among three programs: (i) judicial case management; (ii) justice sector development and modernization; and (iii) judicial administration. While this first functional budget is an important step, full-fledged program budgets remain to be developed. The Project will inform this process, in line with the new budget classification currently under preparation and international best practices. Activities to be financed: The Project will finance the goods, consultants' services and training required to strengthen MdJL's strategic budget planningcapacity by, inter alia: 1 MdJL may also have to adapt its organizational structure to share some of its functions and responsibilities with the CSPJ established by the new Constitution approved on July 1, 2011. 19 This review will take into account the sharing of roles between the MdJL and the CSPJ that may result from the new Constitution; it will also support the implementation of the recent internal reorganization of the MdJL and establishment of the Internal Audit function. 20 This activity will be based on the outcome of sub-component 2.4 aimed at developing monitoring and evaluation (M&E) tools for measuring court performance. 37 - identifying performance objectives, indicators and targets21; - developing and implementing an action plan for the MdJL's strategic budget planning; - developing and implementing a training plan addressing the different dimensions of the budget reform with workshops in each judicial district, and an annual seminar with 22 participants ; and - strengthening the budget and financial management capacities of the various units involved in the expenditure management process. 2.3 Supporting the Human Resources Development of the MdJL (Estimated cost: 0.5 million Euros) 21. Rationale and objectives. Until recently no rules existed for auxiliary and administrative staff, and the status, salaries and functions of most judicial staff other than judges was a major issue. In August 2011 the MdJL agreed to increase significantly the salaries of the 23 court clerks and submitted to the Council of Ministers draft decrees for reforming their functions and career framework, and the role of the secretariat-greffe, the key clerk official for the running of the day-to-day business of the courts. While the Project may not address all aspects of the Judiciary's human resources challenges, it will focus on supporting ongoing human resources strategic planning reform, and reinforcing the career and skills of administrative staff in order to contribute to the development of a new court management model. In addition, this subcomponent will aim at strengthening the capacity of MdJL and ISM to identify, design and provide quality training, with a particular focus on court management and performance improvement techniques. 22. Activities to be financed:The Project will finance the goods, consultants' services and training required to support the human resources of the MdJL by, inter alia: - designing and implementing standard performance evaluation mechanisms and parameters for court staff and establishing new M&E mechanisms to improve performance; and - designing specific training modules for the MdJL and the ISM to disseminate best practices in the field of court management and performance, and to support the implementation of the PAPJs by the selected pilot courts. 2.4 Strensthenins of M&E Tools for Court Performance (Estimated cost: 0.7 million Euros) 21 The development of MdJL's performance objectives, indicators and targets will be participatory, associating all relevant stakeholders, including at the regional and court level. 22 This may include workshops in each judicial district, and an annual seminar. 23 Between 600 and 2900 DH depending on their grade level. 38 2.4.1 Supporting the MdJL in Developing an Upgraded System of Court Statistics (0.4 million Euros) 23. Rationale and objectives. Statistics generated by the MdJL do not allow tracking progress towards performance improvements. Official court statistics are collected manually at regular intervals (monthly, quarterly or yearly) or in response to specific data or statistical requests from the MdJL. No statistics are retrieved from data stored in the automated CMSs. Manual procedures generate simple statistics that do not allow an effective monitoring and control of the performance. While there are data available on the backlog of cases and clearance rate by courts, there is no data available on the duration of the main types of cases. To address this issue, the Project will assist the Statistics Unit of the MdJL in developing an upgraded system that would ensure statistics are appropriately collected, analyzed and disseminated. 24. Activities to be financed: The Project will finance the goods, consultants' services and training required to strengthen the court statistics capacity of MdJL by, inter alia: - Reviewing the existing judicial statistics system and how it is being implemented in the pilot courts. - Upgrading and designing a statistical system with manual procedures and computerized applications compatible with the CMSs, to include: (a) definition of data quality standards; (b) periodic collection and analysis, quality control and information processing mechanisms; (c) adoption of standard judicial workload measurements among comparable courts; and (d) dissemination of statistics through the publication of periodic reports for distribution among judicial districts and sector users - Assisting the pilot courts in the implementation of the new data system to ensure they generate reliable statistics about court performance, and assist in gradually expanding this system to other courts. 2.4.2 Supporting MdJL to Develop an ICT Strategy for Court Performance (0.3 million Euros) 25. Rationale and objectives. ICT may affect virtually all aspects of justice service delivery and has become an essential tool to improve court performance. However, its impact is often delayed due to the complexity of the culture and skills changes that the implementation of an ICT solution requires. The MdJL's automation experience has shown the need to carefully program ICT investments to ensure that they address user needs, and are rolled out with appropriate support. The Project will finance the development of software applications and their installation in pilot courts based on best international practices and tools. 26. Activities to be financed: The Project will finance the goods, consultants' services and training required to support MdJL's development of an ICT Strategy for court performance by, inter alia: - Preparing a medium-term strategic ICT plan, comprising: (a) an ICT resource inventory and a needs assessment; (b) standardization and upgrading of ICT equipment (with emphasis on consolidating SAJ); (c) adaptation and strengthening of the technical support mechanisms for ICT equipment, (d) training of the personnel of the ICT support units of MdJL to ensure effective maintenance and utilization of technological resources, (e) 39 strengthening and reorganization of the ICT units; and (f) specific action plans for the acquisition, allocation and maintenance of computer equipment in accordance with the identified priorities. - Reformulating the MdJL's policies on technological standards, including: (a) information administration and security policies; (b) acquisition, utilization, maintenance, upgrading and replacement of computer equipment, to ensure effective customer service; and (c) applications such as digital signatures and certification of electronic mails. - Assisting MdJL in supervising the implementation of the ICT action plan and new policies on technological standards. 2.5 Improving MdJL's Communication with Users and Citizens (Estimated cost: 1.0 million Euros) 27. Rationale and objectives. Substantial efforts have been undertaken by the MdJL to improve access to judicial information. All laws and regulations are made public in the official gazette of the Government, accessible online on the website of the Office of the Secretary-General of the Government (SGG) (www.sgg.gov.ma). The MdJL has also created a comprehensive legal and judicial database (adala.justice.gov.ma) with the support of the EU. The Supreme Court publishes a selection of case law every two years, while a number of specialized law reviews analyze landmark court decisions. Nevertheless, key stakeholders, such as lawyers and civil society, continue to complain about insufficient transparency, access to case law, and lack of communication about the court services, legal rights, and ongoing reform process. While most issues regarding insufficient information at local court level will be addressed under Component 1, there is a need to develop and implement a communication program to inform and educate current and potential users The MdJL's national communication strategy will support the development of a new culture in the justice sector based on "user-friendly approaches." The communication strategy will be based on a household survey that will help assess perceptions vis-A-vis the justice sector. In spite of recurrent complaints about the lack of fairness and effectiveness of the formal court system, there is no comprehensive and reliable study that provides hard core data on perceptions of, and access to, justice in Morocco. This lack of data is a critical constraint in setting evidence 24 based priorities for access to justice interventions 28. Activities to be financed: The Project will finance the goods, consultants' services and training required to improve MdJL's communications with users and citizens by, inter alia: (i) improving the MdJL's communication strategy; 24 The only available surveys focused on users of the CdCs and registries were carried out in 2003 and 2004, under a Bank-financed project, and showed that on average over 80 percent of users of the commercial courts and registries were satisfied; lawyers and litigants perceived significant gains in the enforcement of judgments between the first and the second survey; users also reported a significant improvement in the information available before using a commercial court. UNDP is currently conducting a user survey on the implementation of the new Family Code in five pilot Family Court Districts. 40 (ii) providing training on communication techniques for MdJL's relevant units; (iii) carrying out workshops, training activities and publications for civil society, the private sector and the general public, and awareness campaigns about justice sector issues and citizens' rights; (iv) designing and implementing specific communication plans and activities in the selected pilot courts, linked with PAPJs and SARs; and (v) undertaking nationally representative surveys aimed at assessing perceptions about justice services throughout the country, and access to, and use of, the court 25 system in Morocco. 2.6 Stren$thenin$ the capacities of the MdJL to prepare draft laws and regulations and to disseminate laws and regulations and case law (Estimated cost: 0.4 million Euros) 29. Rationale and objectives. Almost all draft laws in Morocco originate from Government agencies, with a few drafts being prepared by Parliament. Each line ministry remains in charge of drafting laws that are within the scope of its sectoral mandate. Due to the relatively weak capacity of most line ministries, the quality of legal drafting does not meet international standards. Together with the SGG, the MdJL plays a key role in ensuring the quality of legal drafting, either by providing expert support to other Ministries, or by leading reforms on subject-matters that are directly under its purview, i.e. laws relating to the court system, or the commercial registry. In this context, the Project will enhance the capacity of the new Directorate of Legislative Studies and Drafting established by the MdJL in August 2011 and charged with ensuring that laws are drafted and disseminated following best international practices, with due emphasis on the clarity of the rules to facilitate their application by the executive and the judiciary. 30. Activities to be financed: The Project will finance the goods, consultants' services and training required to modernize legal drafting and dissemination of case law by, inter alia: (i) developing a strategy and methodology for: (a) identifying legal reform needs relevant for improving court performance; (b) laying out reform options and assessing their impact; (c) implementing a consultative process with stakeholders; and (d) preparing judicial reforms; (ii) supporting the implementation of the strategy and methodology adopted through the development of ICT applications, training and workshops; and (iii) reviewing and updating the tools for disseminating laws, regulations and judicial decisions Component 3: PROJECT MANAGEMENT, MONITORING AND EVALUATION (Estimated cost: 0.87 million Euros) 25 Considering the practical challenges of implementing this survey, results will not be used to monitor or evaluate the impact of other Project components, in particular Component 1. 41 31. Rationale and objectives. The UGP will be responsible for coordinating day-to-day Project activities and administering loan funds. It will ensure that all financial management and procurement functions are performed in accordance with the provisions of the Loan Agreement. The UGP will be headed by a project manager appointed by a decision of the MdJL and will report to the Secretary General of the MdJL. He/she will be in charge of supervising and monitoring the UGP in the performance of its respective tasks. The UGP will receive support from the DECM and will be physically located in the offices of the DECM. The UGP will also comprise staff assigned from other key interested Directorates from the MdJL (Civil affairs, Criminal Affairs, Commercial Affairs, Budget, Human Resources, Infrastructures and Equipment) that will actively support its mandate, in particular the staff from the Budget Directorate that will act as the financial management expert for the Project. Finally, the UGP will comprise external experts hired to fulfill the position of (i) Project coordinator/monitoring and evaluation specialist, (ii) procurement specialist and (iii) Project assistant. If needed, the Project will hire a financial management specialist to assist the staff of the Budget Directorate assigned to fulfill this function. The composition of the UGP and assignment of MdJL staff to the UGP will be detailed in a formal decision of the Minister. 32. The head of the UGP will be a key member of the CdST chaired by the Secretary-General of MdJL, and comprising the heads of the interested Directorates of MdJL and court staff assigned by pilot courts involved in the Project. The CdST will monitor closely the implementation of the Project. 33. Activities to be financed: Provision of goods, consultants' services and training to the UGP for the implementation and monitoring and evaluation of the Project. 42 Annex 3: Implementation Arrangements 1. The Project implementing agency will be the MdJL. ISM will be a beneficiary under a partnership agreement with MdJL for the purposes of Subcomponent 2.3. To facilitate supervision, Procurement Plans will be prepared to package most activities into large contracts to be awarded to international and/or local firms that have proven capacity to deliver results under "turn-key" contracts or similar results-based approaches. Project institutional and implementation arrangements 2. The Technical Committee (CdST). The CdST is in charge of coordinating and monitoring activities at the technical level. To this effect, it is composed of representatives of the core MdJL Directorates and decentralised units involved in the Project, such as the pilot courts and the regional Sub-Directorates of the Judicial Districts covered by the Project. The task of the CdST is to facilitate/supervise the implementation of Project activities. More specifically, the CdST validates the draft PAPJs and SRA prepared under component 1 and submitted by the UGP. It facilitates the coordination of the main actors and builds consensus. It is chaired by the Secretary General of the MdJL. The CdST will meet upon request of its Chair as many times as necessary and at least four times a year. It examines and approves the progress reports, and will post periodic monitoring and evaluation reports in the Project website for comments. It will also review and endorse the draft AOP for each year of Project implementation. 3. The Project Management Unit (UGP). The UGP will be responsible for coordinating day- to-day Project activities. It will ensure that all financial management and procurement functions are performed in accordance with the provisions of the Loan Agreement. The UGP will be headed by the Director of DCEM who will be assisted by a mid-level MdJL management staff dedicating a substantial portion of its time to the Project, at least during the first year of the Project. The UGP will also comprise staff assigned from other key interested Directorates from the MdJL (Civil affairs, Criminal Affairs, Commercial Affairs, Budget, Human Resources, Infrastructures and Equipment) that will actively support its mandate, in particular the staff from the Budget Directorate that will act as the financial management expert for the Project. Finally, the UGP will comprise external experts hired to fulfill the position of Project coordinator/monitoring and evaluation specialist, procurement specialist and Project assistant. If needed, the Project will hire a financial management specialist to assist the staff of the Budget Directorate assigned to fulfill this function. The composition of the UGP and assignment of MdJL staff to the UGP will be detailed in an official decision of the Minister. 4. Specific implementation mechanisms: * Activities involving the Judicial Training Institute (ISM). ISM is a legally autonomous public entity, with its headquarters in Rabat. The Board of Directors of ISM is chaired by the Minister of Justice and comprises the heads of all major public 43 institutions involved in the justice sector. 26 In view of its legal status as an autonomous agency, a partnership agreement will be entered into between the MdJL and the ISM to specify their respective roles and responsibilities in the implementation of activities aimed at improving the training capacity of the ISM and providing specific training to judicial stakeholders within the scope of the Project. * Activities involving pilot courts under Project component 1.1. The Project will assist in establishing local working groups and task forces at the level of each pilot court: (a) a local committee for improving the delivery of justice services (Comite d'Amelioration de la Performance - CAP) will bring together the representatives of key public and private stakeholders (court presidents, royal prosecutors, chief clerks, representatives of the local Bar, representatives of the bailiffs, notaries, experts, municipal council, police, etc.); and (b) thematic working groups will be organized to bring together judicial stakeholders, users and non-users of the judicial system to prioritize issues, devise solutions, and structure a PAPJ (see Annex 2). MdJL observers may participate in the discussions of the working groups. Internal stakeholders will be nominated by the Court President and the Chief Prosecutor of each court. External stakeholders will be identified and nominated by the UGP from a representative sample from civil society organizations and court users following a methodological approach detailed in the POM agreed upon during negotiations. The size and number of the working groups may be limited to facilitate efficient, candid and productive discussions. The particular commitments of each court will be established by agreement between MdJL and the President of each court. Financial Management, Disbursements and Procurement 5. Public Financial Management. The Bank's experience in Morocco and the main conclusions of the 2009 PEFA indicate that the Moroccan public finance system is governed by an elaborate legal and regulatory framework. It also contains strong reliability and transparency safeguards. The financial management risk of the Moroccan public finance system is considered low. 6. Assessment of the Financial Management System. An assessment of the financial management system in place at MdJL was carried out to determine whether it complied with Bank requirements for Project management under OP/BP1O.02. The Financial Management System (FMS) in place in the MdJL, implementing agency for the Project, is based on principals and procedures defined by the legal framework applicable to the public sector and more specifically to governmental institutions. 7. Budget. An annual approved budget for commitments and disbursements is issued by MdJL based on the needs and actions to be undertaken. The annual budget is submitted to the MEF for approval. 26 Law No -02-240 of October 3, 2002. 44 8. Staffing. The MdJL will have a dedicated team to manage the Project. The UGP will be staffed with a Project coordinator/monitoring and evaluation specialist, and a Project assistant, all competitively selected. An external financial management specialist may be hired if needed to strengthen the MdJL's capacity in this area. The head of the UGP will be the Director of DECM who has been recently appointed and has a proven track record working with international donors. 9. Accounting. A cash based accounting system with the outline of budget components is operational according to the regulations described in the public accounting law. The transactions in terms of commitments and disbursements are reflected in the integrated management system for expenditures. The overall principles for Project accounting are outlined below: (a) books of accounts for the Project will be maintained on cash basis principles. Maintaining the reporting financial system to reflect all the transaction flows and issuing of the semi-annual Interim unaudited financial reports will complete this system; and (b) Project accounting will cover all sources and utilization of Project funds. This will include payments made and expenditures incurred. All Project-related transactions will be taken into account in the reporting system. Disbursements made will also be included in the Project accounting system. 10. Reporting. Interim unaudited financial reports for the Project for the Project will be generated from a computerized financial management system. An internal application will be designed to satisfy the reporting requirements. These reports will be management- oriented and will be used for Project monitoring and implementation by MdJL. The Interim unaudited financial reports will include the following: summary of sources and uses of funds, uses of funds by Project component and by Project category, cash withdrawal, and cash forecast. 11. Internal Audit. A unit dedicated to internal audit has been recently established in the MdJL, which should improve the internal audit function. 12. External control. MdJL's responsibility for control of budget execution and monitoring is assigned to the General Inspectorate of Finance (IGF) and to the Audit Court. The Budget Directorate of MEF also plays an important role in controlling transactions financed by external donors. A recent performance audit of the MdJL by IGF stressed the priority of the internal audit department. It also emphasized the monitoring and evaluation functions that provide permanent controls. 13. Annual Audit of the Project: The annual audit will be performed by an independent auditor acceptable to the Bank. The auditor's terms of reference must be acceptable to the Bank. The auditor will issue an audit opinion on the financial statements. In addition to the audit opinion, the auditor will also, either in the audit report or in the report to management: (a) provide comments and observations on the accounting records, systems, and controls that were examined during the course of the audit; (b) identify specific deficiencies and areas of weakness in systems and controls and make recommendation for their improvement; 45 (c) report on instances of non-compliance with the terms of the financial agreement(s); (d) communicate matters that have come to attention during the audit which might have a significant impact on the implementation of the project; and (e) bring to the borrower's attention any other matters that the auditors considers pertinent. 13. The auditor's opinion on the financial statements and management letter should be received by the Bank no later than six months after the end of each fiscal year. 14. The auditor will Audit the Project Financial Statements (PFS) that will include: (i) a statement of sources and utilization of funds or balance sheet, indicating funds received from various sources, Project expenditures, and Project assets and liabilities; (ii) schedules classifying Project expenditures by components, expenditure categories; and (iii) a statement of reimbursement made on the basis of Statements of Expenditure (SOEs). The auditor is entitled to unlimited access to all information and explanations considered necessary to facilitate the audit including legal documents, project preparation and supervision reports, reports of reviews and investigations, correspondences, and credit account information. Flow of funds/Disbursement 15. Disbursements. The proceeds of the loan will be used to finance Project activities and will be handled through the MEF, following established procedures. Documentation supporting expenditures will be available for review by Bank supervision missions and Project auditors. All disbursements will be subject to the conditions of the Loan Agreement and the procedures defined in the Disbursement Letter. Interim Unaudited Financial Reports and Annual Financial Statements will be used as a financial reporting mechanism and not for disbursement purposes. The Bank will honor eligible expenditures for works completed, services rendered and goods delivered by the Project closing date. A four months' grace period will be granted to allow for the payment of any eligible expenditure incurred before the grant closing date. 16. Statement of Expenditures. Necessary supporting documents will be sent to the Bank in connection with contract that are above the prior review threshold, except for expenditures under contracts with an estimated value of (a) US$ 200,000 or less for works; (b) US$ 100,000 or less for goods; (c) US$ 100,000 or less for consulting firms; (d) US$ 50,000, or less for individual consultants, as well as training which will be claimed on the basis of SOEs. The documentation supporting expenditures will be retained at the MdJL and will be readily accessible for review by the external auditors and periods Bank supervision missions. All disbursements will be subject to the conditions of the Loan Agreement and disbursement procedures as defined in the Disbursement Letter. 46 17. Planning of Supervision. A supervision mission will be conducted twice every year based on the risk assessment of the Project. The mission's objectives will include: (i) ensuring that strong financial management systems are maintained for the Project throughout its life; (ii) conducting a semi-annual review of IFRs, and an annual review of audited financial statements and management letters. Procurement Arrangements General 18. Procurement for the proposed Project will be carried out in accordance with: (i) the World Bank's Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, known as the 'Anti-Corruption Guidelines' dated on October 15, 2006 and revised in January, 2011; (ii) the 'Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers' (known as Procurement Guidelines) published by the Bank in January 2011; (iii) the 'Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers,' (known as Consultant Guidelines) dated January 2011; and (iv) all the accompanying standard bidding documents (SDBs) and (v) the provisions stipulated in the Loan Agreement. 19. The procurement procedures and SBDs that will be used by the implementing agency (MdJL) will also be defined in the POM, which will include specific and detailed sections regarding Procurement. 20. The following provisions will apply when using NCB method: * The bidding documents will include explicitly the bid evaluation method, award criteria and bidder qualification criteria. * Technical, administrative and financial envelopes will be opened immediately after the bid opening session has started and prices are read aloud. * The bids will be evaluated on the basis of the price and any other criteria expressed either in pass/fail terms or in monetary terms. * Contracts will be awarded to the qualified bidder who has submitted the least-cost evaluated and substantially responsive bid as stipulated in the bidding document. * Standard bidding documents and bid evaluation reports found acceptable by the Bank will be used. 21. Moreover, the Loan Agreement will stipulate that each contract financed out of the proceeds of this loan shall provide that suppliers, contractors and subcontractors will permit the Bank, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract, and to have said accounts and records audited by auditors appointed by the Bank. The deliberate and material violation by the supplier, contractor or subcontractor of such provision may amount to "obstructive practice". 47 22. Advertisement and Procurement Plan. In addition to advertising pertaining to each contract, a General Procurement Notice (GPN) will be published, in United Nations Development Business, and in at least two national newspapers. The GPN will be published after the Project is approved by the Bank and prior to effectiveness. The GPN will provide a description of the Project and information on related procurement. A Procurement Plan in a format acceptable to the Bank will be prepared and updated at least once a year. The procurement plan for the first eighteen (18) month period will be agreed during the negotiations. The procurement plan shall indicate which contracts will be subject to the Bank's prior review. All other contracts shall be subject to post review by the Bank. Procurement methods 23. Procurement of Works: Procurement of small works for upgrading the tribunals working environment in Project targeted areas will be carried out using the NCB methods acceptable to the Bank, as prescribed in the Loan Agreement. SDBs acceptable to the Bank will be used. 24. Procurement of Goods and non-consulting Services: Procurement of goods and non consulting services comprising the acquisition of ICT and office equipment, and the installation of an ICT network, among others, will be carried out using the following methods: * NCB: Each package estimated to cost less than the equivalent of US$3,000,000 may be procured on the basis of NCB procedures acceptable to the Bank. * Shopping: Goods and non consulting services estimated to cost US$100,000 or less may be procured using Shopping procedures. * Direct Contracting: Under circumstances which meet the requirements of paragraph 3.7 of the Procurement Guidelines, goods, non-consulting services and works may be procured in accordance with the paragraph 3.7 of the Procurement Guidelines using the Direct Contracting procurement method. 25. Selection of Consultants: Consultants services comprise mostly technical studies, capacity building activities, as well as audits, engineering studies and remodeling supervision services. Terms of reference will be designed to encourage partnerships between local and international individuals and firms. The following Bank methods and corresponding standard documents will be used: * Quality & Cost Based Selection (QCBS) for consultant services. * Least-cost Selection (LCS). Services for assignments which meet the requirements of paragraph 3.6 of the Consultant Guidelines may be procured using the Least-cost Selection method in accordance with the provision of paragraphs 3.1 and 3.6 of the Consultant Guidelines. 48 * Selection Based on Consultant's Qualifications (CQS). Services estimated to cost less than US$100,000 equivalent per contract may be procured in accordance with the provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines. * Single Source Selection (SSS). Under circumstances which meet the requirements of paragraph 3.8 of the Consultant Guidelines for Single Source Selection, consultant services may be procured in accordance with the provisions of paragraph 3.8 through 3.11 of the Consultant Guidelines, with the Bank's prior agreement. * Individual Consultants (IC). Services for assignments that meet the requirements set forth in the paragraph 5.1 of the Consultant Guidelines may be procured under contracts awarded to individual consultants in accordance with the provision of paragraph 5.2 and 5.3 of the Consultant Guidelines. Under the circumstances described in paragraph 5.6 of the Consultant Guidelines, such contracts may be awarded to individual consultants on a sole-source basis. 26. Short lists may be composed entirely of national consultants for contracts of less than US$100,000 equivalent per contract. 27. Publication of Results and Debriefing. Online (UN Development Business, and/or Client Connection) publication of contract awards would be required for all Direct Contracting, and the Selection of Consultants for contracts exceeding a value of US$200,000. All consultants competing for an assignment involving the submission of separate technical and financial proposals, irrespective of its estimated contract value, should be informed of the result of the technical evaluation (number of points that each firm received) before the opening of the financial proposals. MdJL will be required to offer debriefings to unsuccessful bidders and consultants should the individual firms request such a debriefing. 28. Fraud, Coercion, and Corruption. MdJL, as well as bidders, suppliers, and contractors shall observe the highest standard of ethics during the procurement and execution of contracts financed under the Project in accordance with paragraphs 1.16 & 1.17 of the Procurement Guidelines and paragraphs 1.23 & 1.24 of the Consultants Guidelines. 29. Frequency of Procurement Supervision. Supervision of Procurement by the Bank is an integral part of Project supervision and implementation monitoring. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the implementing agency recommends two (2) supervision missions, to visit the field and to carry out post review of procurement actions. 49 30. Thresholds for Procurement Methods. The following contracts will be subject to Bank prior-review: Expenditure Contract Value Contracts Subject to Prior Category Threshold Procurement Method Review (US$ thousands) 1. Works - NCB The first contract under NCB < 200,000 Shopping Direct contracting All 2. Goods, non>= 3,000,000 ICB All contracts consulting < 3,000,000 NCB The first contract under NCB services < 100,000 Shopping Direct contracting All 3. Services Firms QCBS > =200,000 < 100,000 Other (QCBS, LCS,Terms of Reference and Shortlists CQS) of all contracts Individuals >= 50,000 Single Source All 31. Based on the capacity assessment, and the risk associated with procurement (substantial), the following actions need to be implemented by the date indicated below in order to reduce risks: * By Negotiations: * MdJL will establish: (a) the UGP (including a MdJL official responsible for financial management); and (b) the CdST, and determine their respective membership structure and functions. * MdJL will finalize the draft procurement plan for the first 18 months of Project implementation. * By Effectiveness * MdJL will issue the POM satisfactory to the Bank. This manual will clearly describe procurement procedures, responsibility sharing and document flow among the parties involved in Project implementation. The manual should comprise in an annex, all standard bidding documents that will be used under the Project for works, goods and services. * MdJL will hire 3 key permanent external consultants for the UGP: (a)Project coordinator/monitoring and evaluation specialist, (b) procurement specialist, and (c) Project assistant. 50 Environmental and Social (including safeguards) 32. The objective of the proposed Project is to strengthen the capacity of the Moroccan justice sector to deliver efficient, timely and transparent services through: (a) piloting a participatory reform process at court level involving judges, administrative staff, judicial auxiliaries and users in selected pilot courts; and (b) strengthening the institutional capacity of the central functions of the Ministry of Justice and the Judicial Training Institute to better support and monitor the court system. More specifically, the objective of component 1.2 ("Reengineering of administrative processes for improved service") is to better channel interactions between stakeholders and court services' providers (i.e. court officials responsible for dealing with user requests, mostly at the clerical level). To this end, internal administrative services will be reorganized in pilot courts by developing a modern structure of "front office" and "back office" functions. No structural rehabilitation, enlargement or expansion of existing buildings will be carried out. Limited space reconfiguration and refurbishment inside the pilot courts' buildings for implementing the new service delivery processes and court layout will take place within the existing buildings of the 10 to 12 pilot courts selected from the following jurisdictions in the judicial Districts of Casablanca, Kenitra, and Settat: Court of Appeal (Cour d'Appel) of Casablanca Court of Appeal (Cour d'Appel) of Kenitra Court of Appeal (Cour d'Appel) of Settat Court of Appeal of Commerce (Cour d'Appel de Commerce) of Casablanca Court of Commerce (Cour de Commerce) of Casablanca Court of First Instance (Tribunal de Premi&re Instance) of Kenitra Court of First Instance (Tribunal de Premi&re Instance) of Settat Court of First Instance (Tribunal de Premi&re Instance) of Sidi Kacem Courts of First Instance (Tribunal de Premi&re Instance) for Penal Affairs of Casablanca Court of First Instance (Tribunal de Premi&re Instance) of Mohammedia Court of First Instance (Tribunal de Premi&re Instance) of Benslimane Court of First Instance (Tribunal de Premi&re Instance) of Sidi Slimane Court of First Instance (Tribunal de Premi&re Instance) of Ouazzane Court of First Instance (Tribunal de Premi&re Instance) of Souk Larbaa 33. Based on the activities to be carried out, this Project is rated as a category "C" for environmental risk purposes. No new construction will be financed only minor works in existing infrastructure . No construction or land acquisition will be financed. The Project will not finance any works in any historical building or in any building where asbestos is present. In order to avoid the potential adverse environmental impacts of such minor works, contractors will be required to observe the World Bank Group Environmental, Health, and Safety General Guidelinesas well as Moroccans laws, regulations or guidelines. 34. The following provides a list of the environmental requirements that contractors will have to observe when such minor works are conducted. These requirements will be referenced in the POM. When hiring contractors to carry out minor works, terms of reference, bidding documents and contracts will include the following requirements in order 51 to avoid any potential adverse environmental impact of the proposed works. Specific additional references will be included as needed in the same documents to ensure that the implementation of the planned minor works will be carried out according to the Bank World Bank Group Environmental, Health, and Safety General Guidelines. 35. Requirements to be observed by contractors for the implementation of minor works under the Project will include the following: 36. Applicable laws, regulations and guidelines. Minor works for the rehabilitation, enlargement, adaptation and modernization of infrastructure will be implemented following national laws, regulations and guidelines for the treatment of the materials used, demolitions and management of all direct and indirect effects of the minor works to avoid affecting the environment, including but not limited to: * Dahir no 1-03-194 (11 September 2003) for the Labor Code * Law no28-00 on waste management (BO 7 d6cembre 2006) * Inter-ministerial Order of the Minister of Labor and Vocational Training, the Minister of Health, the Minister of Commerce and New Technologies, the Minister of Energy, Mines, Water and Environment no3352-10 (26 October 2010) determining asbestos standards * Order of the Minister of Labor and Vocational Training no93-08 (12 May 2008) determining specific and general measures applicable to the safety standards included in the Labor Code. 37. Safety: Contractors will: (i) use nets to contain bricks and building material to avoid accidents to third parties; (ii) ensure appropriate signaling is used for pedestrians, workers and other persons in the work area or nearby; (iii) facilitate the transit of pedestrians, taking into account their safety, and (iv) ensure safety rules are known and understood among construction workers to avoid accidents. 38. Solid waste and sanitation: Contractors will: (i) specify the location where dirt will be disposed of, as regulated by local environmental laws, regulations or guidelines; (ii) specify the treatment of oils and liquids used by machinery and staff; (iii) determine the appropriate storage of refurbishment materials during the refurbishment period; (iv) dispose of leftovers of food consumed by the workers, identify and ensure availability of appropriate garbage pails; (v) ensure that the leftovers of the people that sell prepared food for the workers are disposed of to avoid the accumulation of additional garbage in the work area; (vi) ensure the availability of appropriate toilet/sanitation facilities for the workers during the period when the minor works are being carried out; 27and (vii) control and mitigate the effects of the dust produced by the works. 27 Toilet services will be established according to the gender of the users. 52 39. Work hours and noise: Contractors will adopt an adequate work schedule, ensure noise does not unduly affect neighbors, and implement tools to control the noise produced by the minor works. 40. Municipal permits: Contractors will make the necessary arrangements to obtain permits as needed and comply with environmental norm established by the relevant municipality. 41. The "Direction des Equipement et des Travaux" in the MdJL will coordinate the overall implementation process and will be in charge of monitoring and evaluation. Monitoring & Evaluation (M&E) 42. M&E organizational arrangements. The M&E system will be based on the agreed results framework and monitoring arrangements (See Annex 1). The UGP will be responsible for supervising the M&E activities at component and PDO level. The contractor selected by the UGP for Component 1.1 will be in charge of developing an M&E framework for the whole Component 1. The contractor selected for component 2.1 will be in charge of developing an M&E framework applicable to activities under Component 2. Progress in achieving outcomes will be measured through the publication of periodic monitoring reports in the Project website. The format for these reports would be developed by the UGP and the baseline for each pilot court will be established in the beginning of year 1 of implementation. 43. M&E actions. User surveys will be implemented in each pilot court using best international assessment tools at the beginning and at the end of the implementation of Project activities. The household surveys will be carried out to analyze key social variables and trends. Additional surveys in the Project districts will be conducted to assist in measuring performance toward improving service delivery and broadening access to Judiciary facilities. MdJL and the Bank will collaborate during the course of Project execution to assess progress, identify issues and propose measures to ensure that the Project objectives remain relevant while risks are minimized or contained. M&E results will feed back into the MdJL's decision-making to improve performance, and will serve as the basis for discussions of the CdST to receive feedback on outcome indicators. The primary sources of Project data will be: (i) periodic reports from the UGP; (ii) semi-annual Project progress reports and financial statements; and (iii) specially commissioned surveys. Periodic reporting by the UGP will be accessible, through the Project website, by the general public. 53 Annex 4 Operational Risk Assessment Framework (ORAF) Morocco: Judicial Performance Enhancement for Service to Citizen Project ("Mahkamati") (P125799) Stakeholder Risk Rating High Description: Risk Management: The oM my no be ble o coplyComponent 1. 1 is based on a participatory approach to court reform that engages local stakeholders (both court users and thneoayti grnot eblicoml internal judicial stakeholders) in the identification of problems and solutions. During project implementation, workshops with unrealistic growing public with stakeholders will allow ensuring that challenges to justice sector reform are well understood and that the expectations expectations of short-term justice arising from the project are properly managed. reform results. Court support staff is unprepared to respond to reform Resp: Clie Stgerrent: Frequency: Yearly atus: Not Yet demands; individual judges may have t Implementation 0D Date: [ __________jDue various levels of support and Risk Management: resistance to the reforms. At the same time, MdJL and influential Component 2.5 will finance communication campaigns and household surveys to better take into account the needs and stakeholder associations (judges, priorities of citizens. greffiers, and business community) Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet are eager to address current problems 0e Date: Due adhvtaecoceesestdo Resp: Both Stage: Both Recurrent: Due Frequency: Yearly Status: Not Yet 0O Date: Due Resp: Client Stage: Both Recurrent: Due Frequency: Yearly Status: Not Yet 0 i Date: Due 2 . Imlmetn Agnc ()Rss(nldngFdcayRss Capacity Rating H1igh Description: Risk Management: tim,MdJL an d influena with Components 2 will finance a consulting firm in charge of assisting the MdJL in upgrading the organization and takhs lr iamtd eeinnc wite performance of its central monitoring and support functions management procedures, but has Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet 54 significant experience in managing Date: Due other large donor projects (e.g. EU Risk Management: project). The recommendations from procurement/financial management assessments will be implemented and an Operational Manual agreed upon before effectiveness. Resp: Client Stage: Preparation Recurrent: Due 30- Frequency: Status: Not Yet o Date: Oct- Due 2012 Risk Management: Training will be provided to all stakeholders under the project. Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet _ _ Date: Due Risk Management: Component 3 provides for the hiring of external expertise needed for strengthening the capacity of the MdJL in managing and monitoring the project Resp: Client Stage: Preparation Recurrent: Due 30- Frequency: Status: In Progress o Date: Nov- 2012 Governance Rating Moderate Description: Risk Management: i aCriteria for selecting pilot courts includes the willingness and commitment to reform of the court leaders (Court president Centraihzed and non-transparent and Chief Prosecutor), and MdJL is committed to ensure that assignments and rotations of leaders in pilot courts are ecisinmakg n Mdoject mmanaged with a view to minimizing disruption to project activities. negative impact on project implementation. The project will incorporate independent third party monitoring to ensure unbiased assessment of project performance. Lack of systemic involvement of Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet relevant stakeholders reduces the _ Date: Due credibility of the reforms and may Risk Management: cause implementation issues (e.g. lack of understanding, resistance to Project oversight will be ensured by a CdST that involves all relevant stakeholders change). Resp: Client Stage: Preparation Recurrent: Due 11- Frequency: Status: Completed 0 Date: May- 2012 Rating Low 55 Risk Management: The project will have an Operational Manual that will provide clear guidance to MdJL staff about Bank policies and procedures, and significant training and capacity-building activities will ensure compliance with Bank guidelines. IGF is reliable and will conductinternal audits of the project. In addition, a qualified independent auditor acceptable to Bank will audit the project's accounts. Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet Date: Due Design Rating Moderate Description: Risk Management: The project is focused on addressing The PAPJ design will follow a determined framework but will also be kept flexible and adaptable to the lessons learned issues related to pilot courts from their implementation in the pilot courts, and regular reviews will be built into the change process. organization and management in Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet order to improve performance, and Date: Due stakeholders may want to expand beyond this scope during project implementation. Social and Environmental Rating Low Description: Risk Management: Morocco has made great strides to Component 1 of the Project aims at improving access to justice and information about judicial proceedings. These strengthen access to justice for activities will include support for women that require court services. women but some inequalities still Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet exist. Date: Due Access to justice is considered problematic, mainly because of issues of complexity of judicial proceedings especially in rural jurisdictions. These issues will be addressed by the Project in the geographical areas of the pilot districts and courts. Program and Donor Rating Low Description: Risk Management: In absence of effective coordination, EU support to the justice sector ended in 2009 and was focused on infrastructure. This Project will build on achievements 56 engagement of other development of the EU support and focus on addressing issues such as efficiency, transparency and access to justice. partners could interfere with Project implementation Meetings with the local EU team, EU member countries delegations and USAID have taken place and will continue to ensure alignment of the reform approaches. Periodic consultations with the EU, a Resp: Client Stage: Both Recurrent: Due Frequency: Ongoing Status: Not Yet key partner of MdJL, are continuing 0 Date: Due to ensure such coordination exists. Delivery Monitoring and Rating High Sustainability Description: Risk Management: W s Training and technical assistance will be made available to strengthen the capacity of MdJL, especially on Project Weaknesses in the monitoring monitoring and evaluation. capacity of the project management m m ea R rteqnal a: t unit of the MdJL were revealed by a Resp: Client Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet previous EU project. With the Date: Due exception of commercial courts, the Risk Management: pilot courts do not have previous The Bank will remain closely engaged with the UGP and pilot courts to identify implementation issues and address them experience with Bank projects. throughout Project life. Resp: Bank Stage: Implementation Recurrent: Due Frequency: Yearly Status: Not Yet Date: Due Implementation Risk Rating: Moderate 57 Annex 5: Implementation Support Plan Strategy and Approach for Implementation Support 1. The Bank's approach for Implementation Support (IS) will be characterized by flexibility and adaptability. The Bank's team will be able to provide just-in-time support to MdJL and the various project implementation partners, because much of the core team - including the TTL and key FM and procurement staff - will be present in-country. 2. As detailed in Section IV of the main text, there are multiple GoM agencies involved in different parts of Project implementation. For example, the responsibility for training activities will be shared between the MdJL and ISM. Therefore, these agencies will have to formalize their respective roles and responsibilities through "Partnership Agreements" early during Project implementation; the Bank team will assist in reviewing the drafts of these documents and providing technical advice to ensure that such agreements provide the required clarity for each partner agency. 3. There are identified weaknesses in the capacity of the MdJL implementation unit, and no experience in the pilot courts with Bank projects. Therefore, targeted technical assistance will be provided to the MdJL, in particular to the UGP and its members, and the courts. 4. The reform aspects of the Project, particularly the implementation of the pilots, will give stakeholders a major role in identifying some Project activities. Regular reviews will therefore be built into the reform process, to allow all stakeholders to provide feedback on how the reforms are progressing. This will allow for lessons learned in the pilots to be incorporated into later phases. 5. More broadly, the recent changes to the Constitution should give more voice and power to the public. Reform can only succeed if public perception of the courts improves. It is also expected that civil society organizations (CSOs) will be deeply engaged with the issues being addressed by the Project. As part of the Bank's broader engagement with CSOs in Morocco, the Bank will use its implementation support role as a tool to engage CSOs interested on justice issues. 6. The most important external partner to-date in justice sector reform has been the EU, although it program ended in 2009. Nevertheless, to ensure that the Project's activities are complementary with past EU support, meetings with the local EU team as well as USAID have been ongoing throughout Project preparation and will continue throughout the life of the Project. 7. To help with ensuring efficiency and simplicity in procurement, most of the activities will be packaged into a few large contracts, likely to be "turnkey", which would be attractive for international firms, either alone or in partnership with well-established local firms. 8. As financial management systems are generally adequate, relevant arrangements for the Project will be handled by a dedicated team within MdJL. In addition, as a recent external audit has stressed the importance of internal audit functions, the Project will assist the MdJL in establishing an internal audit department, train necessary staff, and develop the internal audit manual. 58 Implementation Support Plan Time Focus Skills Needed Resource Estimate Partner Role First twelve Compliance of conditions Task Team Leader US$150,000 Consultation, months of effectiveness, Project Operations Analyst coordination launch, training of Justice Reform MdJL's officials involved Specialist in the Project Senior Counsel Program Assistant Sector Manager Senior Procurement Spec. Procurement Spec. Senior FM Specialist FM Specialist 12-48 months Compliance with Task Team Leader US$450,000 Consultation, standard/tailor-made Operations Analyst coordination legal covenants Justice Reform Specialist Senior Counsel Program Assistant Sector Manager Sr. Procurement Spec. Procurement Spec. Senior FM Specialist FM Specialist Other N/A II. Skills Mix Required Skills Needed Number of Staff Weeks Number of Trips Comments Task Team Leader 30 10 Operations Analyst 15 10 Justice Reform Specialist 15 5 Senior Counsel 5 0 Program Assistant 10 0 Sector Manager 5 0 Senior Procurement Specialist 20 5 Procurement Specialist 30 0 Senior Financial Management Specialist 20 5 Financial Management Specialist 30 0 III. Partners Name Institution/Country Role European Union Resident Mission in Technical; Rabat consultation, coordination 59