The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Justice for Business Project (P167247) EUROPE AND CENTRAL ASIA | Croatia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 1 | ARCHIVED on 30-Jun-2020 | ISR42247 | Implementing Agencies: Republic of Croatia, Ministry of Justice, Ministry of Construction and Physical Planning, Ministry of Economy, Entrepreneurship and Crafts Key Dates Key Project Dates Bank Approval Date: 31-Mar-2020 Effectiveness Date: -- Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2025 Revised Closing Date: 30-Jun-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the business regulatory procedures and justice service standards for businesses andcitizens. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Reducing the administrative burden for businesses to interact with government Improving justice services for businesses and citizens Project Management and Technical Assistance Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Substantial Implementation Status and Key Decisions Following the Board approval of the loan on March 31, the Government and the Bank signed the loan on April 15 and the project was subsequently ratified by the Croatian Parliament on May 18. The effectiveness deadline as specified in the Legal Agreement is July 14,2020. 6/30/2020 Page 1 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial -- Substantial Macroeconomic Moderate -- Substantial Sector Strategies and Policies Substantial -- Substantial Technical Design of Project or Program Substantial -- Substantial Institutional Capacity for Implementation and Substantial -- Substantial Sustainability Fiduciary Moderate -- Moderate Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other -- -- -- Overall Substantial -- Substantial Results PDO Indicators by Objectives / Outcomes Improvement of business regulatory procedures IN00856573 ►Time and number of procedures to register an LLC (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional 20% 19.5 days and 7 19.5 days and 7 reduction (30% of Value procedures to start an -- procedures to start an baseline) in the time LLC LLC and procedures for registering LLCs Date 31-Dec-2019 -- 30-Jun-2020 30-Dec-2022 Comments: Measured as percentage reduction in time and the number of procedures IN00856575 ►Percentage of licenses with information on licensing requirements published online (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 0 percent licensed 0 percent licensed activities with online activities with online Value -- 75% information on licensing information on requirements licensing requirements Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 6/30/2020 Page 2 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Comments: Number of licenses that can be applied for and obtained online IN00856617 ►Number of procedures to obtain a construction and a use permit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Additional 20% reduction (35% from 22 procedures to 22 procedures to obtain the baseline) in the obtain a construction Value a construction permit and -- number of procedures permit and a use a use permit to obtain a permit construction and a use permit Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: measured as percentage reduction in the number of procedures Improvement of justice service standards for businesses and citizens IN00856574 ►Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 240 days (25% 320 days Value -- 282 days reduction) Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2023 Percentage of reduction of Disposition time for the issuance of judicial decisions in to first instance Comments: decisions in litigious and bankruptcy cases before the commercial courts IN00856616 ►Court users’ and stakeholders’ satisfaction with respect to service delivery in the four selected courts (citizen engagement indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 20% increase in user TBD (The baseline will TBD (The baseline will and stakeholder be set by the results of be set by the results of a satisfaction from the Value -- a survey to be survey to be conducted baseline in the four conducted after loan after loan effectiveness) court facilities where effectiveness) renovation is done Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2024 Measured through a survey as court users’ and stakeholders’ satisfaction with respect to the quality of Comments: justice service delivery in the four selected courts Overall Comments PDO This is the first ISR. There are no changes to the baseline to report. Intermediate Results Indicators by Components 6/30/2020 Page 3 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 1.1. Removing regulatory barriers for market entry and operation IN00856621 ►Implementation of a single digital window for LLCs (DLI 1) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target A single digital window, which can be accessed from different entry points, is the only system for the completion of all A single digital window the formalities required The single digital window that offers online by the 5 agencies Value for LLCs is not -- business registration (Commercial Court operational for Crafts and LLCs is Registry, Tax operational. Administration, Statistics, Pension and Health Insurance) to start an LLC and registration of at least five types of changes. Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: The single digital window is operational. IN00856628 ►Number of changes for LLCs that are digitalized through the single digital window (e.g. change in address, name, directors, voluntary liquidation) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: Key changes for LLCs that can be registered online IN00856629 ►Percentage of new LLCs disaggregated by gender (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: LLCs disaggregated by gender IN00856631 ►Beneficiary satisfaction with business registration services offered through single digital window(citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 60.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 6/30/2020 Page 4 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) Comments: Satisfaction survey on business registration services IN00856632 ►Beneficiary satisfaction with the online information licensing platform (citizen engagement indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 60.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: Satisfaction survey on licensing online informational platform IN00856633 ►Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target An online informational portal with licensing There is no online requirements is There is no online informational licensing operational informational licensing portal; 0 licenses Value -- portal; 0 licenses published Licensing for 15 published online/digitalized business activities is online/digitalized digitalized and transactional Date 31-Dec-2019 -- 30-Jun-2020 30-Dec-2022 Licensing requirements are published online and the number of licenses that can be applied for and Comments: obtained online 1.2. Simplifying construction permitting and improving market functioning in the construction sector IN00856622 ►Simplifying construction permitting (DLI 3a) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target E-Dozvola platform reflects simplified construction permitting E-Dozvola platform is not E-Dozvola platform is procedures and is operational in the city of Value -- not operational in the upgraded to include Zagreb city of Zagreb the “E-Construction Logbook” and issuance of the use permit Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: E-Dozvola platform is operational IN00856626 ►Simplifying requirements for the provision of professional services in the construction sector (DLI 3b) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/30/2020 Page 5 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) At least one At least one 0 requirements are requirement for each requirement for the 2 simplified in the provision of the 4 additional Value -- professions in the of professional services professions in the construction sector is in the construction sector construction sector is simplified simplified Date 31-Dec-2019 -- 30-Jun-2020 30-Dec-2022 Comments: 6 requirements are simplified in the provision of professional services in the construction sector 2.1. Expanding the use of electronic services in the justice sector IN00856618 ►Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Misdemeanor departments within municipal courts and administrative courts are not integrated in the Four Administrative ICMS Courts and the High All commercial courts (9) Administrative Court integrated in ICMS are integrated in ICMS; Value -- a.0; b.0; c.31 and at least nine All commercial courts additional municipal use e-communication courts use the e- with lawyers, courts communication system experts and bankruptcy (2021). trustees. 2 municipal courts use e- communication system. Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2021 Comments: Number of courts and courts departments integrated in ICMS IN00856624 ►Percentage of e-briefs in total number of commercial courts briefs (communication of the courts with parties to the proceedings) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.59 -- 35.85 45.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2024 Percentage of e-briefs in total number of commercial courts briefs (communication of the courts with Comments: parties to the proceedings) 2.2. Improving efficiency of dispute resolution in municipal and commercial courts IN00856619 ►Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 6/30/2020 Page 6 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 30% reduction with Value 9131 cases -- 8167 cases respect to the baseline Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2022 Comments: Percentage of reduction of courts backlog IN00856627 ►Percentage of cases older than 10 years against the total number of unresolved/pending cases (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.55 -- 2.20 1.50 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2024 Comments: Percentage of cases older than 10 years against the total number of unresolved/pending cases 2.3. Rehabilitation and upgrading of selected court facilities IN00856625 ►Improvement in energy efficiency certificate grade (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Zagreb – Energy Efficiency Certificate: Zagreb - Energy C Zagreb - Energy Efficiency Certificate: F Efficiency Certificate: F Varazdin – Energy Varazdin - Energy Efficiency Certificate: Varazdin - Energy Efficiency Certificate: F C Efficiency Certificate: F Value -- Kutina - Energy Kutina – Energy Kutina - Energy Efficiency Certificate: F Efficiency Certificate: Efficiency Certificate: F C Vinkovci - Energy Vinkovci - Energy Efficiency Certificate: F Vinkovci – Energy Efficiency Certificate: F Efficiency Certificate: C Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2024 Improved energy efficiency through reduced primary energy, heating, cooling and water consumption Comments: following reconstruction of courts IN00856630 ►User satisfaction with the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Court (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target TBD (A baseline TBD (A baseline survey survey will be carried 30% increase in user will be carried out after Value -- out after effectiveness satisfaction from the effectiveness to to determine the baseline determine the baseline.) baseline.) Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2024 Satisfaction survey on the witness and victims vulnerable user-friendly spaces in the Zagreb Municipal Comments: Court 6/30/2020 Page 7 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) 2.4. Strengthening Public Investment Management practices in the judiciary IN00856620 ►Rollout of the investment and facility management application for the judiciary (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Investment and facility management application for the Investment and facility judiciary has not been management application developed / rolled out Investment and facility for the judiciary has not yet. Technical management been rolled out. Value -- specifications application for the prepared for judiciary has been Technical specifications procurement process rolled out prepared for and currently procurement process preparation of tender documentation for public consultation. Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2023 Comments: The module for budget planning and execution as well as capital investment planning is rolled out Citizen Engagement IN00856623 ►Number of outreach events organized (citizen engagement indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 31-Dec-2019 -- 30-Jun-2020 31-Dec-2023 Citizen engagement events organized (for instance, focus groups, court open days and workshops at Comments: select court sites). Participants will be surveyed regarding their satisfaction with the effectiveness of the citizen engagement process. Performance-Based Conditions IN00856634 ►PBC 1 Implementation of a single digital window for LLCs (DLI 1) (Text, Output, 11,030,000.00, 10%) Baseline Actual (Previous) Actual (Current) 5 years A single digital window The single digital window that offers online business Value -- -- for LLCs is not operational registration for Crafts and LLCs is operational. Date -- -- 30-Jun-2020 -- 6/30/2020 Page 8 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) IN00856635 ►PBC 2 Licensing requirements are published online, and selected licenses are digitalized (DLI 2) (Text, Output, 5,515,000.00, 5%) Baseline Actual (Previous) Actual (Current) 5 years There is no online There is no online informational licensing informational licensing Value portal; 0 licenses published -- portal; 0 licenses -- online/digitalized published online/digitalized Date -- -- 30-Jun-2020 -- IN00856636 ►PBC 3 Simplifying construction permitting (DLI 3a) (Text, Output, 11,030,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years a. E-Dozvola platform is not operational in the city E-Dozvola platform is not of Zagreb operational in the city of b. At least one Value -- -- Zagreb requirement for the 2 professions in the construction sector is simplified Date -- -- 30-Jun-2020 -- IN00856637 ►PBC 4 Increased uptake of e-Justice tools: a) First instance courts (misdemeanor depts. within municipal and administrative courts) that are integrated in ICMS; b) Courts using e-communication system (DLI4) (Text, Output, 5,515,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) 5 years Misdemeanor departments within municipal courts and administrative courts are not integrated in the ICMS All commercial courts (9) integrated in ICMS Value All commercial courts use -- a.0; b.0; c.31 -- e-communication with lawyers, courts experts and bankruptcy trustees. 2 municipal courts use e- communication system. Date -- -- 30-Jun-2020 -- 6/30/2020 Page 9 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) IN00856638 ►PBC 5 Reduction of court backlog of cases older than 10 years (DLI 5) (Text, Output, 11,030,000.00, 10%) Baseline Actual (Previous) Actual (Current) 5 years 20% reduction with Value 9131 cases -- 8167 cases respect to the baseline Date -- -- 30-Jun-2020 -- IN00856639 ►PBC 6 Disposition time for the issuance of judicial decisions in cases before commercial courts (DLI 6) (Text, Output, 11,030,000.00, 10%) Baseline Actual (Previous) Actual (Current) 5 years 320 days Value -- 282 days -- Date -- -- 30-Jun-2020 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P167247 IBRD-90570 USD 110.30 110.30 0.00 0.00 110.30 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P167247 IBRD-90570 31-Mar-2020 15-Apr-2020 -- 30-Jun-2025 30-Jun-2025 Effective Cumulative Disbursements 6/30/2020 Page 10 of 11 The World Bank Implementation Status & Results Report Justice for Business Project (P167247) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/30/2020 Page 11 of 11