Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY
Report No: 56576-PE
PROJECT APPRAISAL DOCUMENT
Public Disclosure Authorized ON A
PROPOSED TECHNICAL ASSISTANCE LOAN
IN THE AMOUNT OF US$20 MILLION
TO THE
REPUBLIC OF PERU
FOR A Public Disclosure Authorized JUSTICE SERVICES IMPROVEMENT PROJECT II
October 20, 2010
This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS
(Exchange Rate Effective September 13, 2010) Currency Unit = US Dollar 2.8 Peruvian Soles Nuevos = US$1 1.52 US$ = SDR 1
FISCAL YEAR January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ADR Alternative Dispute Resolution AGO Attorney General’s Office (Ministerio Público or Fiscalía) ALEGRAs Legal aid centers administered by the Ministry of Justice in conjunction with municipalities (Asistencia Legal Gratuita) AMAG Judicial Academy (Academia de la Magistratura) CEJA Justice Studies Center of the Americas (Centro de Estudios de Justicia de las Américas) CNM National Judicial Council (Consejo Nacional de la Magistratura) CSO Civil Society Organization CPC Criminal Procedure Code (Código Procesal Penal) CPS Country Partnership Strategy GAC Governance and Anti-Corruption Strategy of the World Bank GDP Gross Domestic Product GoP Government of Peru IBRD International Bank for Reconstruction and Development IDB Inter-American Development Bank IDL Legal Defense Institute (Instituto de Defensa Legal) INPE National Penitentiary Institute (Instituto Nacional Penitenciario) JSCA Justice Studies Center of the Americas (Centro de Estudios de Justicia de las Americas) MEF Peru’s Ministry of Finance and Economy MINJUS Peru’s Ministry of Justice OCMA Anti-corruption Office of the Judiciary (Oficina de Control de la Magistratura) ODECMA Decentralized offices of the OCMA PAD Project Appraisal Document PCU Project Coordination Unit
Vice President: Pamela Cox Country Director: Carlos Felipe Jaramillo Sector Director Marcelo Giugale Sector Manager: Veronica E. Zavala Lombardi Task Team Leader: Lisa L. Bhansali PERU Justice Services Improvement Project II
CONTENTS
Page
I. STRATEGIC CONTEXT AND RATIONALE ...... 1 A. Country and sector issues...... 1 B. Rationale for Bank involvement ...... 4 C. Higher level objectives to which the project contributes ...... 5
II. PROJECT DESCRIPTION ...... 5 A. Lending instrument ...... 5 B. Project development objective and key indicators ...... 5 C. Project Components ...... 5 D. Lessons learned from the 1st project and reflected in the project design ...... 8 E. Alternatives considered and reasons for rejection ...... 11
III. IMPLEMENTATION ...... 12 A. Partnership arrangements (if applicable) ...... 12 B. Institutional and implementation arrangements ...... 12 C. Monitoring and evaluation of outcomes/results ...... 12 D. Sustainability...... 13 E. Critical risks and possible controversial aspects ...... 13 F. Loan/credit conditions and covenants ...... 15
IV. APPRAISAL SUMMARY ...... 16 A. Economic and financial analyses ...... 16 B. Technical ...... 17 C. Fiduciary ...... 17 D. Social...... 18 E. Environment ...... 21 F. Safeguard policies ...... 21 G. Policy Exceptions and Readiness...... 21 Annex 1: Country and Sector or Program Background ...... 22
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ...... 29
Annex 3: Results Framework and Monitoring ...... 32
Annex 4: Detailed Project Description ...... 36
Annex 5: Project Costs ...... 43
Annex 6: Implementation Arrangements ...... 44
Annex 7: Financial Management and Disbursement Arrangements ...... 46
Annex 8: Procurement Arrangements ...... 57
Annex 9: Economic and Financial Analysis ...... 63
Annex 10: Safeguard Policy Issues ...... 64
Annex 11: Project Preparation and Supervision ...... 66
Annex 12: Documents in the Project File ...... 68
Annex 13: Statement of Loans and Credits ...... 71
Annex 14: Country at a Glance ...... 73
Annex 15: Map IBRD 33465R ...... 75 PERU
JUSTICE SERVICES IMPROVEMENT PROJECT II
PROJECT APPRAISAL DOCUMENT
LATIN AMERICA AND CARIBBEAN
LCSPS
Date: October 20, 2010 Team Leader: Lisa L. Bhansali Country Director: Carlos Felipe Jaramillo Sectors: Law and justice (100%) Sector Manager: Veronica E. Zavala Themes: Access to law and justice (40%); Lombardi Judicial and other dispute resolution mechanisms (40%); Legal institutions for a market economy (20%) Project ID: P110752 Environmental category: C Lending Instrument: Technical Assistance Joint IFC: N/A Loan Joint Level: N/A Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 20.00 Proposed terms: Variable-Spread Loan (VSL) with a repayment schedule linked to commitments and with all options. Payable in 13 years, including a 10.5 year grace period with a custom repayment schedule with repayments on each May 15 and November 15. Front-End Fee equal to one quarter of one percent (.25%) of the loan amount payable from the Borrower’s proceeds within 60 days of effectiveness. Financing Plan (US$m) Source Local Foreign Total Borrower 10.00 0.00 10.00 International Bank for Reconstruction and 20.00 0.00 20.00 Development Total: 30.00 0.00 30.00
Borrower: Republic of Peru Represented by the Ministry of Economy and Finance Jr. Junín 319, Cercado de Lima, Lima, Perú Tel: (51-1) 311-5930
Responsible Agency: Judiciary of Peru Av. Paseo de la República s/n, Palacio N 4to Piso, Oficina 444 Lima, Perú Tel: (51-1) 719-6300 Fax: (51-1) 427-0292 [email protected]
Estimated disbursements (Bank FY/US$m) FY 2011 2012 2013 2014 2015 2016 Annual 0 5 6 6 2.5 0.5 Cumulative 0 5 11 17 19.5 20 Project implementation period: 4 years Expected effectiveness date: April 1, 2011 Expected closing date: September 30, 2015 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Ref. PAD I.C. Does the project require any exceptions from Bank policies? Ref. PAD IV.G. [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [ X ] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [X] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Ref. PAD IV.G. Project development objective Ref. PAD II.B., Technical Annex 3
The Project development objective of the Justice Services Improvement Project II is to improve the quality of service delivery by the Participating Institutions and to enhance access to justice with a focus on citizens’ needs for justice services.
Project description [one-sentence summary of each component] Ref. PAD II.C., Technical Annex 4
Component 1—Improved Justice Services Delivery: The objective of this component is to support improvements in procedural processing time and attention to users of justice services through the provision of technical assistance to improve the efficiency and timeliness of services offered by the Judiciary and the Attorney General’s Office, among other institutions.
Component 2— Improved Human Resources Management Capacity: This component seeks to enhance the human resources management capacity of personnel in the Participating Institutions through a performance-based methodology of selection, evaluation, promotion and sanction, and through more integrated training programs. This will include the use of modern concepts of human resources planning and performance, such as the use of performance-based management.
Component 3—Enhanced Transparency and Access to Justice: This component aims to develop a stronger anti-corruption strategy for the Judiciary, including training for magistrates and personnel of the OCMA (Anti-corruption Office of the Judiciary). This component will also seek to enhance access to justice for resource-poor citizens, including support for legal aid and conciliation services through the Ministry of Justice (ALEGRAs) and through promoting participatory campaigns with civil society.
Component 4—Project Management, Monitoring and Evaluation: This component seeks to maintain and to strengthen the Project Coordination Unit (PCU), including strengthening procurement, financial management and monitoring and evaluation capacities within the Judiciary (where the PCU is located) to implement the Project on behalf of the 5 Participating Institutions.
Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10
OP/BP 4.01 is triggered and environmental management guidelines prepared for the contractors that will be carrying out the minor works under the Project. Despite triggering OP/BP 4.01, the minor works planned under the Project are consistent with the “C” environmental impact classification. The Environmental Assessment is not a standalone document and it has been incorporated into the Operational Manual.
Significant, non-standard conditions, if any, for: Ref. PAD III.F.
Board presentation: November 18, 2010
Loan/credit effectiveness:
The Condition of Effectiveness consists of the following, namely that the Subsidiary Agreement has been executed on behalf of the Borrower, through MEF, and the Participating Institutions.
Withdrawal condition:
No withdrawal shall be made from the Loan Account until the Bank has received payment in full of the Front-end Fee.
Covenants applicable to project implementation:
The proposed project will not require any exceptions from Bank policies and will comply with all applicable Bank policies.
1. The Borrower, through the Participating Institutions, shall maintain, at all times, until the completion of the Project, a steering committee (CDP) with membership, structure, functions and responsibilities satisfactory to the Bank, as set forth in the Operational Manual. 2. The Borrower, through the Judiciary, shall maintain, at all times until the completion of the Project, a Project coordination unit (PCU), with qualified and experienced technical and administrative staff in adequate numbers, including the core functions required for the effective implementation of the Project (including a Project coordinator, a procurement specialist, an accountant, and a disbursement specialist), all with terms of reference satisfactory to the Bank.
3. The Borrower shall carry out the Project and cause the Project to be carried out in accordance with the Project Operational Manual, satisfactory to the Bank, including the environmental guidelines for the carrying out of minor works under the Project. 4. For the purposes of carrying out of the Project, the Borrower, through the PCU, shall prepare and submit to the Bank a consolidated annual operating plan (AOP) and thereafter take all measures required to ensure the efficient completion and achievement of said AOP, based on the views of the Bank on said plan. 5. To facilitate the carrying out the Project, the Borrower, through MEF, shall enter into a Subsidiary Agreement with all Participating Institutions, under terms and conditions satisfactory to the Bank, including the obligation of the Participating Institutions to implement the Project activities under its responsibility in accordance with the AOP for the relevant year, and as set forth in the Operational Manual, and the obligation to provide the corresponding counterpart funds for the financing of the Project activities under their responsibility. I. STRATEGIC CONTEXT AND RATIONALE
A. Country and sector issues
1. Peru has maintained a sound macroeconomic framework and, as a result, has been able to benefit from these policies in the form of high growth and significant poverty reduction. Between 2004-2008, Peru's GDP grew at an average rate of 7.6% and, by 2008, the year before the onset of the economic crisis, it reached 9.8%, among the strongest growth performances in Latin America and the Caribbean. Fast economic growth has been accompanied by poverty reduction and job creation. Poverty declined from 48.6% in 2004 to 34.8% in 2009, a decline of 13.8 percentage points. While inequality remains high, Peru is making progress in addressing it. Economic growth decelerated sharply in 2009, as a result of the global crisis, but remained positive and by 2010 economic recovery has taken place at vigorous rates, with growth reaching 8% in the first semester of 2010. Prospects for the mid- term remain positive.
2. The World Bank Group’s Country Partnership Strategy (CPS) for 2007-2011 (Report No. 37913-PE) discussed by the Executive Directors on December 19, 2006 outlines three pillars reflecting Peru’s strategy for development: (i) Economic Growth; (ii) Social Development; and (iii) Modernization of the State1. While justice sector2 reform cuts across each of the three pillars, the CPS explicitly recognizes the need to improve the justice system and reduce corruption within the context of modernizing the State and service delivery. In particular, Peru’s Ministry of Economy and Finance (MEF) has requested Bank support for a second stage to the Peru Justice Services Improvement Project, which closed in March 2010, in order to: (i) scale-up components under the first project (which focused only on 10 out of 29 judicial districts); (ii) provide technical assistance for the implementation of Peru’s new criminal procedure code (CPC) which was adopted by Congress in 2006 and introduces oral proceedings and greater transparency in both investigative and adjudication processes; (iii) continue with improvements in professionalizing human resources management; and (iv) strengthen access to justice in rural and peri-urban areas.
Peru’s Justice Sector 3. This Project involves the justice sector’s key agencies: (i) Judiciary; (ii) Ministry of Justice (MINJUS); (iii) National Judicial Council (CNM); (iv) Judicial Academy (AMAG); and (v) Attorney General’s Office (AGO). These are the 5 Participating Institutions under the Project. Below is a brief explanation of their mandates and some of the recent sector developments as well as continuing challenges.
1 See Country Partnership Strategy for the Republic of Peru 2007-11 (Report No. 37913-PE). 2 The “justice sector” incorporates a wide range of institutions involved in normatively based conflict resolution and enforcement. Courts are obviously key, but the sector includes ministries of justice, the legal profession, the police, prosecutors, public defenders, ombudsmen and others, as well as traditional and other non-state dispute resolution mechanisms. The objectives of sector reform vary, but at a minimum entail ensuring that the institutions perform their work efficiently, effectively, in accord with legal norms and in a way that ensures equal access to all. “Legal reform” encompasses modification of the normative framework and thus is a part of or overlaps with justice sector reform. See Bank’s Law and Justice Institutions website for more information. 1 4. The Judiciary is in charge of administering justice through a hierarchy of courts in the country. It is comprised of: (i) a supreme court, (ii) appellate courts, (iii) trial courts, and (iv) formal justice of the peace courts. The Judiciary is governed by an Executive Council and a presiding justice of the supreme court—the Chief Justice. Services of the Judiciary are delivered in each of the country’s 29 judicial districts, which have a corresponding territorial district. The highest authority in each of these districts is the District President, who is a judge elected from among all the official appellate judges of that court. 5. The Ministry of Justice (MINJUS) is a part of the Executive branch and oversees the sector’s development in broad terms. It proposes reviews of the legislative framework and is responsible for providing Public Defender services and free legal services to the citizenry. 6. The National Judicial Council (Consejo Nacional de la Magistratura—CNM) is in charge of selecting and appointing judges and prosecutors, except when their position is filled through election. The CNM is comprised by seven representatives: one from the Supreme Court, one from the Board of Prosecutors elected from among the bar associations of the country, one elected from among the presidents of the national universities, one from among the presidents of the private universities, and two representatives of the country’s other professional associations. The decisions of the CNM regarding the assessment and ratification of judges are not subject to judicial review, and the CNM is an autonomous institution, not dependent on the Judiciary.
7. The Judicial Academy (Academia de la Magistratura—AMAG) forms a part of the Judiciary and is in charge of the instruction and training of judges and prosecutors at all levels. Its Board of Directors is comprised by two Supreme Court judges, two Supreme Court prosecutors, a representative of the CNM and its Director General. An indispensable requirement for promotion is having passed the specialized training required by the Judicial Academy.
8. The Attorney General’s Office (AGO, or in Spanish, the Ministerio Público – Fiscalía de la Nación) has functioned as an independent institution in Peru’s justice sector since 1981. Fiscales do not represent the government; this role is carried out by another group of government attorneys called Procuradores (or state attorneys under the Ministry of Justice). Instead, the fiscales or prosecutors’ role is to oversee the investigation of criminal activity and represent the interests of society to prosecute potential wrongdoing (see Recent Sector Development for more detail).
9. Peru also has a notable system of “justices of the peace”, some of whom are attorneys at law and some of whom are not, but all are trained to resolve conflicts through mediation. They can even pronounce judgments based on criteria of justice, equity, and/or tradition, and not necessarily official norms.
Recent Sector Developments
10. During the period 2008-10, procedural changes were introduced by the new criminal procedure code (CPC), which was formally passed by Congress in 2006. The new CPC included the gradual expansion of the fiscales’ role in criminal proceedings. It makes the fiscal responsible for overseeing the investigation and conducting the prosecution of alleged 2 crimes. Checks on any abuses of these powers, especially as regards the violation of due process rights, will be provided by a new category of judges – the jueces de garantía -- whose authorization is needed for arrest warrants, searches and seizures, use of pre-trial detention and similar actions. (It bears mentioning that under the prior system, there was no comparable check on the instructional judge’s ability to undertake such actions as part of his/her investigation). Fiscales, in coordination with these and the trial judges, will also be able to recommend abbreviated proceedings and alternative sentencing.
11. In 2009, a Judicial Ethics Commission was established as part of the Judiciary’s Anti- corruption Office, known as the “OCMA” (Oficina de Control de la Magistratura). The Commission will work with a software that permits cross-checking data related to the declaration of assets by judges and other judicial personnel and can recommend cases to the OCMA, or CNM in case of a justice of the supreme court.
Challenges Facing the Sector
12. Despite advances in criminal procedural reform and more transparent processes, Peru’s justice sector still faces several challenges. Although court management models were developed under the first Bank-financed Justice Services Improvement project and performance contracts were introduced in 10 (out of the 29) judicial districts of the Judiciary, there remains considerable room for improvement. Corruption continues to present a serious problem--essentially two types of economic barriers are faced by users: official costs and indirect or informal costs. Official costs include court costs and attorney fees,3 while indirect or informal costs include the litigant’s opportunity costs for the time invested in the process or coimas (bribes) to accelerate a process. Both types of costs place a heavy burden on the financial resources of the poor. Even when court fees are waived for poor litigants there are unavoidable costs, such as travel expenses for the rural population, opportunity costs for hours not worked, and attorney fees.4 Indeed, the CPS notes the lack of access by the poor to public services, including legal aid and state judicial services.
13. Numerous studies show that a lack of access to justice is another fundamental challenge. These reveal that the majority of users of Peru’s justice system have at least a secondary education, suggesting that people with low educational levels (many of whom are poor) are not accessing these services to resolve social or economic disputes. Peru includes more than five million indigenous peoples, including Quechuas, Aymaras and the ethnic groups of the Amazon (approximately 18% of the population). Linguistic and cultural barriers, as well as the complexities of the judicial system, discourage potential indigenous users. Many such users go through the justice system proceedings without understanding Spanish or simple legal procedures.
3 Payment of court fees is a requirement for court processes. The fees are readjusted annually based on the Unidad de Referencia Procesal -URP) which is a unit of measurement of court fees. See Peru Policy Notes, Justice Chapter (2006). 4 Exemption from the payment of court fees or the “indigent waiver” requires following a complex special procedure of which most litigants are unaware. In addition, the litigant must prove his or her disadvantaged economic situation, which results in the further incursion of expenses. See Policy Notes 2006 and CPS (page 4). 3 14. Another challenge for the sector is poor technical and professional development. Although the Judiciary and the Attorney General’s Office (AGO) have the authority to fill vacancies directly, the Judicial Council (CNM) is the sector institution in charge of selecting and appointing judges and prosecutors. However, despite some progress in better evaluating the quality of judicial decisions, no effective and permanent systems are in place for the selection, performance evaluation, training, and removal of judicial staff. Objective criteria for these processes are also absent. The recently adopted Judicial Career Law seeks to bring about improvements in these areas by focusing on merit-based selection and regular examinations and evaluations. A related challenge to professional development is that of weak accountability mechanisms--corrupt behavior is both a cause and result of judicial inefficiency. In the fight against corruption, the Judiciary has made some progress in detecting and exposing cases of corruption through its Anti-corruption Office (OCMA). These cases were detected and recommended for prosecution by the Judicial Council (CNM) and AGO as part of the Judiciary’s anti-corruption campaign.5 Nonetheless, these achievements have not been sufficient to lessen the negative perception of the justice system in the eyes of the population, which often associates only the courts/Judiciary with “justice”.
15. One of the greatest challenges faced by Peru’s justice sector was a lack of coordination between key agencies, a notable achievement of the first Bank-supported project (approved in 2004). This coordination has resulted in the rationalization of services and the joint determination of sector-wide priorities such as the adoption of a Judicial Career Law. Such coordination is critical for the effective implementation of the CPC as it requires substantially different responsibilities for judges and prosecutors, requiring separate as well as coordinated training, and a specialized selection process for personnel. In fact, the 1st project’s Steering Committee, which was comprised of the heads of the Judiciary, Judicial Council, Ministry of Justice, and Judicial Academy, now also includes the AGO, which will participate in this second stage Project.
B. Rationale for Bank involvement
16. Given the challenges facing Peru’s justice sector, various institutions are currently undergoing a process of modernization and restructuring. The Ministry of Economy and Finance (MEF), along with the 5 Participating Institutions (Ministry of Justice, Judiciary, Judicial Council, Judicial Academy and AGO) jointly requested the Bank’s support to address the above-mentioned sector challenges; specifically, a project to address the short-to- medium term needs of the sector, building on the foundation laid by the first Bank-supported justice project. Working with these five justice sector institutions is fundamental to both broader legal and judicial reform as well as, more specifically, the successful implementation of the Criminal Procedure Code (CPC) and its systemic reforms. These 5 institutions are the main actors in charge of case processes and court trials using the oral, adversarial method, and the Bank’s experience in justice reform as well as the previous justice project--under which many inter-institutional coordination mechanisms were developed--places it in a unique position to provide technical assistance. To this end, the Government of Peru (GoP) is seeking technical assistance from the Bank for the implementation of the CPC. In essence,
5 Cited in the Official Daily Journal El Peruano on February 16, 2006. 4 the GoP is interested in ensuring management capacity in addition to technical knowledge within the relevant institutions.
C. Higher level objectives to which the project contributes
17. This Project seeks to support the Government of Peru to modernize public services (one of the three key pillars of the CPS) through the provision of technical assistance for improvements of the justice sector. More specifically, the Project would support a coordinated approach to reform and joint policy-making in the sector among 5 key agencies as well as scale up the first Justice Services Improvement Project which was limited to only 10 judicial districts. Thus, the Project will focus on performance improvements in service delivery in all judicial districts, including continuing efforts in professionalizing human resources management, and enhancing access to justice at the national level (i.e. not specific to a particular judicial district) as well as strengthening transparency through support for oral procedural reform in criminal justice.
II. PROJECT DESCRIPTION
A. Lending instrument
18. The lending instrument is a Technical Assistance Loan (TAL), which is the most appropriate Bank instrument given the Project’s focus on building the institutional capacity of Peru’s justice sector and based on the successful experience of using a TAL under the first project.
B. Project development objective and key indicators
19. The Project development objective of the Justice Services Improvement Project II is to improve the quality of service delivery by the Participating Institutions and to enhance access to justice with a focus on citizens’ needs for justice services.
20. Key indicators include the reduction in time/speed of trial (from beginning to end of trial process) and the increase in number of consultations in legal aids centers administered by the Ministry of Justice (ALEGRAs). Other indicators include measurable improvements in the following areas: (i) reduction in the duration of judicial processing time in criminal cases; (ii) stronger oversight capacity by organs charged with control of corruption; and (iii) the expansion of justice services to Peru’s poorest communities, including legal aid.
C. Project Components
21. Project components include:
Component 1: Improved Justice Services Delivery
x Strengthening of the strategic planning and managerial capabilities of the Participating Institutions, through, inter alia: 5 (a) the application of case management procedures and the improvement of planning and budget management capacity; and
(b) the design and implementation of mechanisms for the coordination of administrative and jurisdictional functions, and for monitoring and performance-based management. x Strengthening of the operational capabilities of Participating Institutions, through, inter alia:
(a) (i) the design and implementation of a case filing system in courts of the Judiciary; (ii) the design and launching of technological platforms and statistical plans for case management for the Judiciary and AGO; and (iii) the development and installation of an electronic consultation system of case files (“information kiosks”) for the Judiciary and AGO, including the carrying out of minor civil works;
(b) (i) the design and implementation of institutional mechanisms to promote coordination within, and among Participating Institutions; (ii) the development and installation of software for the Judiciary’s web portal; (iii) the development and installation of information systems within the AGO; and (iv) the development and implementation of a notification system for the Judiciary; and
(c) the development and implementation of service delivery mechanisms to support the reduction of processing time and the improvement of efficiency in attention of users by the Judiciary and AGO, including the design of regulations and a pilot plan for introducing oral proceedings in labor and civil cases by the Judiciary. x Strengthening of the capacity of Participating Institutions to implement the new CPC, in accordance with the CPC Implementation Strategy, through, inter alia:
(a) the development of case and administrative management systems aimed at coordinating information managed by the Participating Institutions, including for the management of caseload data within and among Participating Institutions pursuant to the provisions of the CPC;
(b) the design and implementation of training activities on the CPC procedural reforms, for personnel of the Participating Institutions;
(c) the carrying out of minor works for the refurbishment, including equipping, of courtrooms, AGO offices and MINJUS’ public defense offices, required for the implementation of oral proceedings;
(d) the development and implementation of a joint communications strategy for the Participating Institutions, in coordination with the Commission for Implementation of the CPC; and
6 (e) the carrying out of minor civil works for the refurbishment of the legal medical institute within the AGO to establish a forensic laboratory.
Component 2: Improved Human Resources Management Capacity
x Strengthening of managerial capabilities of the Participating Institutions, through, inter alia:
(a) the design and implementation of: (i) professional development plans for personnel of the Judiciary; (ii) human resources planning and management models for the Participating Institutions;
(b) the support of the institutional capabilities of CNM to improve its human resources processes, including for: (i) the development and validation of job profiles; (ii) the development and adoption of recruitment processes and instruments, including registries and communication strategies; (iii) the design and implementation of a system to evaluate the judges’ and prosecutors’ performance in accordance with the relevant job profile; (iv) the identification of post-selection training programs, in coordination with AMAG; and (v) the carrying out of minor civil works to refurbish CNM central office to install new technological equipment; and
(c) the support of the managerial capacities of CNM, including for: (i) the development of human resources administrative rules and procedures for the CNM and (ii) the development and installation of information systems for the Judiciary and AGO to improve access to legal databases of their personnel.
x Support of the development and implementation of integrated judicial training programs in AMAG, through, inter alia, the development of training courses and materials, including for: (a) the development of a specialized program for those interested in joining the Judiciary; (b) the development of planning and learning tools adapted to the needs of the personnel of the Judiciary, MINJUS’ public defense, and AGO; (c) the design of an evaluation system for the training programs; and (d) the creation of electronic libraries, virtual information centers, and carrying out of minor civil works for the installation of conference facilities, including videoconferencing.
Component 3: Enhanced Transparency and Access to Justice
x Strengthening of the transparency and anticorruption efforts of the Participating Institutions, through, inter alia:
(a) the support of the disciplinary capacity of the Judiciary, including: (i) the provision of anticorruption training for personnel of the Judiciary; (ii) the establishment of institutional coordination mechanisms among administrative units in the justice sector; and (iii) the development of mechanisms to oversee the functioning of judicial institutions, through joint activities with the Peruvian civil society; and
7 (b) the support of OCMA, including: (i) the development and implementation of managerial tools to improve the Judiciary’s efficiency and transparency; and (ii) the development and implementation of a communication strategy.
x Promoting an equitable delivery of justice services for the poor, through, inter alia:
(a) (i) the support for the creation of new ALEGRAs, including the carrying out of minor civil works and the acquisition of equipment; and (ii) the development and implementation of training programs for legal aid providers and personnel of ALEGRAs;
(b) the support of managerial capabilities of MINJUS, including the design and implementation of user-centered service delivery strategies and mechanisms; and
(c) the support of the public legal education program, including the dissemination of information and consultation with community leaders, local authorities, and representatives of grassroots organizations.
Component 4: Project Management, Monitoring and Evaluation
x Strengthening of the PCU, including improving its procurement, financial management and monitoring and evaluation capabilities.
x Provision of technical assistance to the PCU to carry out the independent financial audits.
x Strengthening of the management, monitoring and evaluation capabilities of the Participating Institutions for the carrying out of Project activities.
D. Lessons learned from the 1st project and reflected in the project design
22. The design of this Project benefits from the experience and lessons learned from the first Justice Services Improvement project (P073438, IBRD Loan 7219-PE), which served as a “re-entry” point for the Bank in 2004, following the transitional government of President Valentín Paniagua. As noted above in the Country Context section, much of the first project’s ‘storyline’ was defined by the Peruvian Judiciary’s inheritance of a legacy from the Fujimori era of a discredited reputation and vulnerability to external political and economic influences. During his presidency, Fujimori removed 70% of the judges and filled the open positions with appointees on a 'provisional basis' - meaning that they lacked experience and were effectively beholden to the government since they could be removed from office at any time6. The first project began execution in this context of transition and with an ever sceptical public and even more challenging relationship with the Executive branch. Today, judges are appointed by the heads of judicial districts, who are independent of the executive branch of government. The system of provisional judges used by Fujimori was also able to function because he suspended the authority of the Judicial Council, an independent
6 Freedom House (2009). 8 institution which was strengthened under the first Bank-supported project and which is charged with naming district court presidents as well as reviewing the performance of judges and prosecutors (investigating, disciplining, sanctioning, promoting, etc.). The first project worked closely with the CNM (as this Project seeks to as well) to institutionalize performance-based evaluations and better prepare Judicial Council personnel to complete their important oversight function.
Below is list of lessons learned and support for specific design under this Project:
x Operational Inter-Institutional Coordination. The importance of jointly designing and implementing operational plans among the participating agencies played a key role in the achievements of the first project, which led to the MEF’s request for a follow-on project. Technical cooperation has also been critical in supporting coordinated efforts in justice sector reform and providing continuous dialogue between the institutions involved. For example, because the 4 institutions under the first project were “key” to strengthening the sector, greater joint initiatives in policy-making and regular planning sessions for the rationalization of their respective budgets are planned for this second stage Project. Not only can the 5 participating agencies make joint decisions to enhance the Project’s impact, but they can prioritize specific types of jurisdictions (e.g. labor, commercial, civil, family, etc.) and judicial districts where funds can be channeled under the Project. The present Project will build on these lessons by continuing established inter- institutional coordination mechanisms. x Coordination of Procurement and Financial Management Efforts. This has also proven to be a critical lesson of the first project, particularly the transferring of counterpart funds from each of the institutions to the PCU. The administration of funds by the PCU expedited payment for providers of goods and services and minimized overlaps. x Importance of a Well Designed Communications Strategy. Justice sector reforms involved under this Project seek to change long-held processes and paradigms (exemplified, for instance, in the transition from the traditional written or inquisitorial system to the oral-based, adversarial system) and a strong communications strategy will be developed to complement project activities. For example, the CPC seeks to shift judicial proceedings to oral procedures, and such a change will provide an important opportunity to assist excluded populations such as indigenous communities which have strong oral (rather than written) tradition. x The Project will target specific activities identified by sector agencies and key stakeholders as top priorities, and will address service delivery issues within a realistic timetable of approximately four years. While some aspects of the Enhanced Transparency and Access to Justice and Improved Human Resources Management Capacity components will focus on impact on a national level (i.e. countrywide or not limited to a specific region), the Improved Justice Services Delivery component will reflect a more specific geographical focus by working in particular judicial districts (in some cases, this may involve continuing activities that were begun under the 1st project within the same judicial district).
9 x Ownership of reform efforts by key internal and external stakeholders (judges and active users of justice services), as well as their involvement in the implementation process, will be ensured by strengthening the Project Steering Committee (Comité Directivo) at the national level and through local committees at the judicial district level, where most stakeholders/users are represented. x Scaling Up. The chart below outlines specific activities to be “scaled up” under the Project, building on the foundation laid by the first project:
Achievements under1st Project Activities under Justice Services Improvement Project II Introduced and strengthened the use of IT Improve IT systems and technology platforms in systems in the 10 participating judicial districts. the 5 counterpart agencies (Ministry of Justice, Judiciary, Judicial Council, Judicial Academy, and AGO) in central and regional offices. Monitored and developed statistical database for Design and implement procedural model and the implementation of the new Criminal systems under the CPC based on M&E results Procedure Code (CPC) in initial districts of and to introduce oral proceedings in additional Huaura and La Libertad with a focus on the judicial districts. needs of personnel and the reorganization of working environment. Human resources management improvements Implementation of M&E performance-based such as increased coordination between the systems for jurisdictional and administrative Judicial Council and the Judiciary based on functions (to be used by the Judicial Council) institutional needs assessments including profiles based on existing profiles developed under the 1st of judges and magistrates. project but will now be consistent with the newly approved Judicial Career Law and expanded to include the AGO under the proposed project. Supported deconcentrating decision-making Implementation of deconcentrating IT systems authority within the Judiciary to the 10 regional for increased information-sharing among judicial (superior) level courts, including the drafting of a personnel at national-level, to improve and speed Supreme Court decree permitting regional court up decision-making based on procurement presidents and their court administrators to capacity to prepare terms of reference, bids, procure goods and services without prior central conduct evaluation of bidding documents and judicial authorization. participate in post-procurement reviews. Used digital systems to improve notification Implement digital filing systems in the remaining services for users and biometric records in the judicial districts of Peru where IT systems Judicial District of Lima. permit. Special attention will be made to inter- institutional systems among government agencies to enhance information sharing for the purpose of effective notifications.
10 Institutional strengthening of the OCMA (anti- Provide support for mobile OCMA units and corruption office of the Judiciary) resulting in improve system for lodging complaints of a increased number of investigations and follow-up jurisdictional and/or administrative nature. on complaints filed. This included public Includes training approximately 16,000 OCMA outreach about the OCMA’s mandate and donor staff in values of good service, design of outreach coordination with USAID. programs to change perception of judicial authorities and enhance respect for execution of judicial decisions. This includes disclosing final disciplinary processes and stronger controls on judicial officers remaining in services following disciplinary measures.
Improved selection, evaluation and disciplinary Implement oral proceedings as part of the capacity of the Judicial Council to include greater Judicial Council’s oversight of judicial focus on human resources management. performance. Enhanced access to justice through support to Expand access to legal aid further through legal aid centers (ALEGRAs) nationally and support for additional ALEGRAs (including use dissemination of information about their services of Alternative Dispute Resolution (ADR) such as to the poor. conciliation in all centers. Developed of job profiles according to core Improve capacity of operators based on profiles competencies, including judges, public defenders to include training requirements in ADR and administrative personnel. mechanisms. Promoted of fundamental rights through public Expand PRONELIS through training and legal education (PRONELIS) through the information campaigns for judicial operators and Ministry of Justice (25,000 registered in learning citizens. activities). Improved quality of training programs offered by Strengthen training capacity by the Judicial the Judicial Academy through outsourcing to Academy for judges and prosecutors based on universities and other academic institutions profiles designed together with the Judicial (think tanks). Council, Judiciary and AGO and outsource to other entities beyond universities (NGOs). Improved management of training program Implement M&E capacity for training to administered by the Judicial Academy. institutionalize the use of evaluations to improve delivery and adjust course offerings to respond to participants’ needs.
E. Alternatives considered and reasons for rejection
23. The Bank discussed the possibility of an Additional Financing Loan; however, it was agreed that the criminal justice reform element of this Project and the inclusion of the Attorney General’s Office would merit a full project cycle process. The Bank also considered the possibility of a Specific Investment Loan (SIL), but given that no new construction is involved (only minor refurbishments of existing infrastructure), a TAL was considered the preferred choice.
11 III. IMPLEMENTATION
A. Partnership arrangements (if applicable)
Not Applicable
B. Institutional and implementation arrangements
24. The Project would continue the institutional and implementation arrangements followed under the first Justice Services Improvement Project, and now includes representation of the AGO as a member of the Project’s Steering Committee.
25. The heads of the Judiciary, CNM, AMAG and MINJUS and AGO comprise the membership of the Steering Committee, which is responsible for the Project’s policy oversight and inter-institutional coordination. The Project Coordination Unit (PCU) reports to the Steering Committee for overall project oversight and strategic direction, administrative and budgetary purposes. The PCU is located in the Judiciary and the Project Coordinator reports directly to the President of the Supreme Court. Each participating judicial district involved in the implementation of activities will have assigned local staff. Liaisons of each of the 5 Participating Institutions will also work with the PCU’s technical staff on each component to ensure close coordination for the carrying out of specific activities. The specific roles and responsibilities of the Steering Committee, the PCU, including profiles and the tasks of liaisons as well as judicial district staff, are defined in the Operational Manual.
26. A Subsidiary Agreement between the MEF and the Participating Institutions will outline the Participating Institutions’ responsibilities to ensure an efficient and continued coordination throughout the Project’s implementation, including the commitment of counterparts’ funding as established in the Project’s Operational Manual.
C. Monitoring and evaluation of outcomes/results
27. The Project will allow the Bank to facilitate an efficient dialogue among justice sector institutions, while providing them with flexible technical support and knowledge sharing required for the development of a coherent and participatory reform strategy. The Bank will assess progress during Project implementation, identify major issues and propose measures to ensure that the project objectives remain relevant while risks are minimized.
28. This Project will require continuous M&E as well as effective consensus building. Key performance indicators to measure outputs and outcomes are proposed in Annex 3. Institutional assessments of sector agencies as well as baseline data gathered under the first project will be used to validate the continued participation of judicial districts. Periodic surveys, as well as the annual reports of the 5 Participating Institutions, will assist in measuring the progress in service delivery. Where not yet available, target values for the end of the Project will be based on baseline data obtained during the full year of Project implementation. 12 29. To promote project integration and lesson learning across offices, annual workshops with staff of all the agencies in the project will be held to review progress, agree on required adjustments, and review proposals for Annual Operating Plans (AOP) for the following year. AOPs will include, inter alia: (i) a description of Project activities to be carried out during the year following the date of presentation of such plan (based on the list of prioritized activities under each Participating Institution’s responsibility); (ii) a timetable for the implementation of said activities; and (iii) a financial plan, including a budget plan (detailing the amount of counterpart funds to be provided in the relevant year).
30. The leadership of the Steering Committee will provide an additional vehicle for feedback and development of broader consensus during Project execution. Semiannual Project Reports will include an evaluation of activities carried out during the previous semester plus detailed activities and estimates for the subsequent one, as well as expected Government and Bank contributions. A Project launch workshop will take place shortly after effectiveness with participation of PCU staff, key decision-makers of beneficiary agencies, and heads of selected judicial districts. The PCU will furnish to the Bank, within six months after the Closing Date, the standard Implementation Completion Report.
D. Sustainability
31. The justice reform process in Peru has entered a critical stage following the sector strategy called “CERIAJUS” (Special Commission for Reform of the Administration of Justice) some years ago. This Project provides an excellent opportunity to engage the Judicial and Executive branches in a concerted approach to initiate sustainable institutional reforms that improve the quality of the justice services and enhance not only the responsiveness of sector agencies, but also their credibility with the Peruvian population.
32. The sustainability of the Project will depend on: (a) the sector authorities’ commitment to implementing the components; (b) their ability to overcome active and passive resistance of vested interests to change; and, (c) the productive utilization of the technical assistance provided. Longer-term sustainability will depend on: (i) creating a momentum for reform through credible “success stories” of improved performance and their communication to the public; and (ii) the sector authorities’ ability to convince the public that justice services are available and useful for a majority of the population.
E. Critical risks and possible controversial aspects
33. The residual risk rating for this Project is Moderate. The inclusion of the AGO came at the request of the other four justice sector institutions involved in the first project. Their rationale was that little can be achieved in criminal justice reform without the AGO; the latter being such an important actor in the implementation of the new CPC. This is a positive development, both because of the AGO’s role in the sector and because these institutions are often prone to institutional rivalry. Also, the AGO has already joined the Project Steering
13 Committee, and following approval of this Project, the AGO would continue the practice of sharing a single coordination unit (PCU) for the Project. 34. The CPC was the product of several notable legal scholars and practitioners in Peru after studying similar reforms in other Latin American countries. The Bank has monitored the CPC’s pilot implementation to date in Peru and has noted its success insofar as reducing time and cost, as well as enhancing transparency of the judicial proceeding (see Annex 1 for more detail). The Project does not include any financing of police or prison-related expenditures, nor would the Bank be financing case-specific litigation.
35. As highlighted in Annex 1, political uncertainties may impinge on the participating institutions’ decision-making capabilities as well as on the availability of budgetary resources. Similarly, the capacity for setting and maintaining coherent policy priorities may also be impaired. To address these risks, specific covenants in the Loan Agreement will allow the Bank to closely monitor the status of project implementation and take prompt decisions on possible adjustments.
Risk Risk Rating Risk Minimization Measure
The approval ratings for the Government are low and N Not only has the Project been prepared Peru will be entering an electoral period during in a participatory process so as to 2010-11. Reforms in the justice sector are minimize this risk, but the heads of frequently the subject of political debate among each of the 5 Participating Institutions parties and project objectives could be questioned. and their joint efforts through the Steering Committee reduce the risk that the objectives would be questioned by non-sector, political actors.
Peru has one of the highest corruption indices in the M The design of two components region. The control of corruption, voice and (Improved Justice Services Delivery accountability, rule of law, and regulatory quality and Enhanced Transparency and indicators have also generally deteriorated. Access to Justice) specifically focus on improving transparency and performance as well as involving communities and CSOs in design and implementation of activities. This participatory approach is expected to reduce the risk of vested interests in blocking project implementation.
The inclusion of support for the implementation of M The Project includes specific indicators the new Criminal Procedure Code poses a risk of relative to the CPC’s implementation in widespread frustration among users and sector specific jurisdictions (according to the personnel if no results are visible in the short and GoP’s agenda) and will focus on medium-terms. disseminating results in the short term in order to maintain momentum and support for these reforms. Experience with the CPC’s implementation thus far suggests that this risk can be mitigated through a focus on institutional and
14 coordinated support among the agencies and GoP, particularly the MEF. From Components to Outputs
Difficulties for involving personnel of the Judiciary, N Intensive consensus-building activities Ministry of Justice and AGO in the implementation with technical staff in these institutions of the Improved Justice Services Delivery during project preparation will help to component. mitigate this risk.
Limited availability of reliable statistics for M The baseline data obtained from users measuring improvements. of justice services during the 1st project will help to reduce this risk and strengthen the sector’s use of statistics in all 5 Participating Institutions, including a focus on performance. Availability of counterpart funds may require M Budget constraints of the Judiciary postponing some activities. should be eased by improvements in resource management and improved planning with support of the PCU, in coordination with the MEF and all 5 agencies to ensure activities remain on track. Overall Risk Rating M
Risk Rating - H (High Risk), S (Substantial Risk), M (Moderate Risk), N (Negligible or Low Risk)
F. Loan/credit conditions and covenants
Loan/credit effectiveness:
36. The Condition of Effectiveness consists of the following, namely that the Subsidiary Agreement has been executed on behalf of the Borrower, through MEF, and the Participating Institutions.
Covenants applicable to project implementation:
37. The Borrower, through the Participating Institutions, shall maintain, at all times, until the completion of the Project, a Steering Committee (CDP) with membership, structure, functions and responsibilities satisfactory to the Bank, as set forth in the Operational Manual.
38. The Borrower, through the Judiciary, shall maintain, at all times until the completion of the Project, a Project coordination unit (PCU), with qualified and experienced technical and administrative staff in adequate numbers, including the core functions required for the effective implementation of the Project (including a Project coordinator, a procurement specialist, an accountant, and a disbursement specialist), all with terms of reference satisfactory to the Bank.
15 39. The Borrower shall carry out the Project and cause the Project to be carried out in accordance with the Project Operational Manual, satisfactory to the Bank, including the environmental guidelines for the carrying out of minor works under the Project.
40. For the purposes of carrying out of the Project, the Borrower, through the PCU, shall prepare and submit to the Bank a consolidated annual operating plan (AOP) and thereafter take all measures required to ensure the efficient completion and achievement of said AOP, based on the views of the Bank on said plan. 41. To facilitate the carrying out the Project, the Borrower, through MEF, shall enter into a Subsidiary Agreement with all Participating Institutions, under terms and conditions satisfactory to the Bank, including the obligation of the Participating Institutions to implement the Project activities under its responsibility in accordance with the AOP for the relevant year, and as set forth in the Operational Manual, and the obligation to provide the corresponding counterpart funds for the financing of the Project activities under their responsibility.
IV. APPRAISAL SUMMARY
A. Economic and financial analyses
Economic: Economic evaluation methodology: [ ] Cost benefit [ ] Cost effectiveness [X] Other (Alternativa Unica/GoP request)
42. Improved delivery of justice services may generate significant benefits. Primarily, the Improved Justice Services Delivery component facilitates an improved investment climate for the resolution of private sector disputes. It also fosters local business activity and attracts foreign investors who may otherwise be deterred by a poorly performing judicial system, particularly in criminal justice and protection of private property. The Project is also expected to have an impact in terms of improving the effectiveness of resource administration by the Judiciary.
43. In the area of human resources management, efficiency gains are expected from personnel reallocation and attrition at the administrative and auxiliary levels, organizational restructuring at the level of judicial districts to eliminate duplications in functions and responsibilities.
Financial: 44. No specific fiscal impact is expected since the substantial salary and benefits increases of judicial officials have been in place for more than two fiscal years by decision of the current Executive branch. Any additional incentives for judges and judicial officials will be provided “in kind” as a part of Project activities. No incremental personnel will be hired to staff the General Manager’s Office or the selected judicial districts; and, existing professional
16 staff will be reassigned as needed.
B. Technical
45. The first project invested time and effort to obtain data on the “demand” side of justice services which had traditionally limited the ability of sector decision-makers to design adequate policy reform to user needs. The traditional focus on “supply” aspects has proven insufficient to address critical dysfunctions (for instance in the areas of delays and productivity). Now, with the identification of “user patterns” as established under the 1st project, a new analytical framework exists that disaggregates data about the type of users and cases, amounts involved, duration of critical stages of the judicial process, and final disposition of a case. The findings of “user patterns” have been reflected in the Project design.
46. There is limited technical and managerial expertise within the agencies charged with addressing justice sector issues such as performance management. Therefore, the Project will finance the TA required to carry out priority reforms. Staff of participating institutions will be involved defining the consultants’ tasks (e.g. preparation of terms of reference, analysis of the findings and implementation of the recommendations, and formulation of adjustments to their work) to ensure that the Project strengthens the service delivery capacity of the sector and its personnel.
C. Fiduciary
Procurement Issues 47. Procurement for the proposed project would be carried out in accordance with the World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004 revised October 2006 and May 2010; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 revised October 2006 and May 2010, and the provisions stipulated in the Loan Agreement.
48. Several procurement assessments, including an Independent Procurement Review (IPR) and Mid-term Review, were conducted under the first project and in preparation for this Project. In particular, an updated report of the procurement capacity of the Judiciary, where the Project Coordination Unit (PCU) is located, was completed by the Bank (see Annex 8).
49. The overall project risk for procurement is Moderate. The level of risk for this project will be reassessed during implementation and revised if necessary once there is evidence of mitigating measures such as (i) the adequate implementation of the Operational Manual; (ii) the development of Bidding Documents for project implementation, and (iii) procurement reviews conducted by independent auditors and/or Bank staff.
17 Financial Management Issues
50. The Project Coordination Unit (PCU) of the Judiciary operates as an autonomous executing unit and reports to the General Manager of the Judiciary and will be responsible for fiduciary aspects of the new Project. The PCU performed satisfactorily during the implementation of the first Justice Services Improvement Project financed through loan IBRD 7219-PE as evidenced during Bank financial management supervision and external audit outcomes. The new Project will have the participation of five justice sector institutions; however, the PCU will be the sole responsible entity for the management of the financial aspects of the Project; therefore, the financial management arrangements proposed for this new operation are significantly based on those followed by the previous Project (which closed in March 2010), which have proved to be acceptable to the Bank. On this respect, the financial management assessment focused on evaluating the continuity of the FM arrangements so as to ensure the appropriateness of process and procedures. On this aspect, the Operational Manual has been updated reflecting the FM arrangements for the new Project (new chart of accounts, IFRs according to functionality of expenses, and audit arrangements).
51. With regard to the continuity of the PCU and its core staff, the Government of Peru has requested the application of retroactive financing which the Bank has included in the project documents, up to an aggregate amount not to exceed US$500,000. In addition, the team is also exploring the possibility of the Government’s willingness and ability to fund the PCU staff with counterpart funds should retroactive financing not be sufficient to cover the gap between the two stages of the first and second projects. Some actions that are still pending as of the date of the FM assessment include: the plan for PCU continuity and the signing of a Subsidiary Agreement between the Ministry of Economy and Finance and the 5 Participating Institutions recognizing the utilization of a sole PCU. The signing of the Subsidiary Agreement is considered an Effectiveness Condition under the Loan Agreement.
52. Therefore, the project inherent and control risks are rated moderate (M). Thus, the overall risk rating is also rated moderate (M). (A detailed risk analysis is presented in Annex 7).
53. On the basis of the review performed and progress achieved so far, the financial management team concludes that the proposed arrangements – as designed – can be considered acceptable to the Bank, subject to their effective and successful implementation.
D. Social
Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes
54. The Project will promote an equitable justice system through increased access to justice services, particularly for the poor and marginalized. Around one third of the Peruvian population is now excluded from adequate justice services. The urban poor and indigenous communities experience large socio-economic and cultural barriers to accessing services of
18 the justice sector. Equally important, when they can access justice services, deficiencies in the way they operate impact disadvantaged groups more negatively because they do not have the resources to cope with the system’s shortcomings. This has a negative social impact as the poor face legal problems associated with their most basic needs (e.g. food and housing, personal safety, family violence), yet they are not able to use the justice system to solve them. The Project will, therefore, benefit the poor through strengthening the administration of family and labor cases, the legal aid system and conciliation services through support to the ALEGRAs.
55. The Project will focus on strengthening gender equity in the justice system and promote justice services targeted to the different needs of women and men. Institutional weaknesses and cultural biases in judicial decisions are especially harmful for poor women, hindering their ability to support their families and engage in productive activities. Strengthening the capacity of family courts to effectively handle child support and domestic violence cases, implementing new justice services delivery models for complex family cases and providing gender training to judicial personnel will improve justice sector responses to women’s specific needs.
Participatory Approach: How will key stakeholders participate in the project?
56. In order to promote ownership of the reform process, it was realized early in the identification stage (and based on experience from the 1st project) that participation from all interested parties was essential. Consultations with internal stakeholders (judges, court administrators, lawyers, prosecutors, civil society organizations (CSOs), and users themselves) as to the particular components have been undertaken during project preparation. The highest authorities of the sector as well as technical level staff also participated in a number of project preparation events.
57. Key activities of Project implementation will include national, regional and community based, local workshops; these events will bring together sector authorities, legal and non-legal professionals and CSOs for the purposes of discussing the issues faced by the justice sector at all levels. Participation will reinforce the partnership among sector agencies for reform purposes and generate a common thrust to the main elements of joint actions as envisioned in the Project (e.g. components which involve all the Participating Institutions such as implementation of the CPC).
How does the project involve consultations or collaboration with CSOs?
58. During Project identification (2008-present) and during the execution of the 1st project, the Task Team held several workshops and user interviews with civil society organizations (CSOs). In order to bridge the communication gap, judicial officials, practicing lawyers, bar association representatives, academics, and the private sector (large firms and SMEs) also participated in these workshops and seminars, often with local and international experts. Once the proposed Project is initiated, additional consultations through other mechanisms (surveys, focus groups for the design of television and radio spots) will ensure that civil society continues to be consulted and has channels available to them to
19 propose new ideas for improving justice services. In addition, the PCU will design a complaint handling mechanism to receive and respond to issues relating to implementation.
59. Increasing Peruvians’ confidence in justice services and obtaining their support for the modernization efforts is an important element for ensuring that Project activities impact as many citizens and users as possible. Justice system deficiencies such as complicated procedures, confusing or unclear judicial decisions, or disregard for due process breed a lack of confidence in sector institutions. Additionally, a decade of judicial reforms during the 1990s which were only partially successful in improving the system still generates skepticism about new efforts. In order to obtain support from Peruvian society, the Project will work closely with the media and CSOs to realistically communicate the objectives of modernization efforts. For example, the Project will seek to involve CSOs in specific aspects of the execution where they enjoy a comparative advantage, such as: (a) participation in and monitoring of the communications strategy; (b) provision of legal aid or conciliation services; (c) training of the Judiciary, AGO and MINJUS staff on gender and community justice issues; and (d) civic education activities such as the PRONELIS program on public legal education on citizens’ rights and their enforcement.
What institutional arrangements have been provided to ensure the project achieves its social development outcomes?
60. The Project will include financing for the “Enhanced Transparency and Access to Justice” component, which includes the design and implementation of a broad social outreach and communications strategy, with a specific focus on the CPC and low-income users of sector services. In addition, a Gender Action Plan and a Social Inclusion Plan have been developed with specific actions by components to be carried in the context the Project. Also, continuous participation at the local and district levels during the planning and implementation stages will increase the confidence of the Project’s ultimate beneficiaries— users (and potential users) of justice services.
How will the Project monitor performance in terms of social development outcomes?
61. The most critical obstacle for the improvement of justice services in Peru is the disconnect between sector institutions and the rest of society; the institutions are seen as too burdensome or inefficient to a large numbers of users who seek to resolve disputes by other means such as mediation or arbitration (or violence, in some cases). Also, Peru has a strong tradition of informal justice through the Justice of the Peace (no letrados) system (not lawyers, but community leaders). During implementation, several mechanisms will be used to ensure that social development outcomes are monitored through: (i) periodic workshops to evaluate service delivery among such stakeholders as community leaders, women’s organizations and CSOs and make recommendations for modifications; (ii) continuous surveys of users to evaluate satisfaction with service delivery before and after performance changes; and (iii) the use of quantitative and qualitative indicators to measure service performance (including case processing time or duration, number and type of cases disposed per court, costs for the State and for the user, etc.) and dissemination of the results to the public.
20 E. Environment
62. The proposed Project is rated “Category C” for environmental purposes as was the case under the first project. The Project’s activities will only include refurbishment or rehabilitation of existing infrastructure and no new construction is being financed. The Safeguard Policy (OP/BP 4.01) relating to environmental assessments has been triggered by the Bank to require contractors to observe environmental standards when such rehabilitation is conducted (see Annex 10 for detailed information). An Environmental Assessment (EA) for the Project has been incorporated into the Operational Manual and is not a standalone document and was disclosed on June 1, 2010.
F. Safeguard policies
63. As mentioned above, the Bank triggered OP/BP 4.01 to avoid any potential adverse impact on the environment as a result of the minor works planned under the Project and require contractors to follow specific guidelines. Annex 10 provides a summary of the requirements/guidelines that contractors have to abide by and which are referenced in the Operational Manual of the Project.
Safeguard Policies Triggered 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
G. Policy Exceptions and Readiness
64. The Project does not require an exception from Bank policy, and the inclusion of financing for criminal justice reforms has been reviewed and cleared by Bank management, including the Legal Vice-Presidency.
65. With regard to readiness conditions, the PCU from the first project will continue to function until effectiveness of this Project within the Judiciary; all five Participating Institutions have already agreed on the use of one joint PCU which will remain under the Judiciary and report to the Project’s Steering Committee.
66. The Operational Manual from the first project has been revised, incorporating lessons learned and best practices on project implementation and management as well as M&E.
21 Annex 1: Country and Sector or Program Background
PERU: Justice Services Improvement Project II
I. Introduction 1. Access to justice refers to the ability of individuals and companies to take recourse in the justice system to resolve their disputes, and to receive the effective, impartial, transparent response that the State ought to provide in order to resolve such conflicts. In other words, the concept goes beyond simple access to the courts, and includes the right to a fair trial in a court of competent jurisdiction (with independent judges), with guarantees of due process and enforcement of judgments within a reasonable time. 2. Justice, and access to justice sector services, is directly related to the economic performance of a country. The institutions in charge of administering justice play an important role in the promotion and distribution of wealth. A well-functioning justice sector favors economic growth, since its institutions, among other things, define and protect property rights and regulate property transfers, help establish the rules for entering and withdrawing from the market, and promote free competition. 3. Ineffective justice affects business investment decisions, raises businesses transaction costs, and reduces the volume of business transactions in which companies are willing to engage. Several studies conducted by USAID regarding the impact of the administration of justice on the economy indicate that a weak Judiciary affects a country’s rate of growth by at least 15 percent. Among other aspects, judicial ineffectiveness: x Raises transaction costs. Entrepreneurs find it necessary to contract legal advice. They are also affected by the slowness of the processes and by the need to make informal payments to accelerate their handling. x Reduces the number of transactions in which entrepreneurs engage. For example, they only contract with vendors whom they know; they do not enter new markets; and they limit the granting of credit. x Reduces competitiveness, which, coupled with the first two factors, reduces investments. 4. Low levels of confidence and the perception of corruption in the justice sector, and especially in the Judiciary, diminish the competitiveness of a country and its potential for receiving investment. Investigations such as those conducted by Lynch et al (1999)7 conclude that the justice situation in an investment-receiving country has an influence of approximately 20 percent in the investors’ decisions.
7 Cited by Herrero and Henderson, 2003. 22 II. Barriers in Access to Justice: Diagnostics and Issues for the Sector
5. Problems of access to justice are the result of inefficiencies in the management of the sector’s institutions, corruption, and incapacity to satisfy the user’s demands for justice, especially within the Judiciary. Although diagnostics and recommendations have been made, implementation of concrete actions, among them improved inter-institutional coordination, are still pending. The majority of the population does not utilize the services of the justice sector to solve their problems, and they identify judicial corruption as one of the greatest barriers. 6. The population faces economic, social, and institutional barriers to access to justice. Economic barriers affect transactions and development; social barriers, above all, affect the poorest population; and institutional barriers impact all users.
Linguistic and Cultural Barriers 7. Peru is a multi-ethnic, multi-cultural country, where a large percentage of the population identifies itself as indigenous. Nonetheless, barriers of exclusion and marginalization exist, along with a notable lack of equality for this population in access to education, health, and justice services. 8. Recent studies demonstrate that the majority of users of the justice system’s services have at least a secondary education, which shows that people with low educational levels (generally poor citizens) are being excluded from these services. Peru has more than five million indigenous peoples, including Quechuas, Aymaras and the ethnic groups of the Amazon (totaling approximately 18 percent of the population, according to the most recent census). The indigenous peoples are among the poorest population of the country. Several studies indicate that in approximately 25 percent of Peruvian households, the head of the household or his or her spouse uses an indigenous language more frequently than Spanish, and that in almost 48 percent of households, the head of the household or his/her spouse has parents or grandparents whose mother tongue is indigenous (Hall and Patrinos, 2006). 9. Linguistic and cultural barriers, as well as the complexities of the judicial system, discourage potential indigenous users. Many of these persons go through the sector’s processes without understanding Spanish or legal procedures and therefore are unable to properly explain their issues to their attorneys or the authorities, or fully exercise their right to a defense. 10. To overcome these barriers, a team of interpreters and translators of native languages must be trained to offer their services to the users of the Judiciary and to the Ministry of Justice. This training will require careful attention to cultural diversity, potential gender biases, and the use of culturally appropriate concepts. To date, the solutions have been very limited and have focused, above all, on increasing the number of bilingual judges in rural communities.
Gender Barriers 11. Problems of access to justice for women include discriminatory gender stereotypes (such as that women are inferior to men, or that men are the heads of the household and have the right to control women and children), and sexist application of law. This situation is intensified
23 in the case of rural women. In addition, deficiencies of the justice system impact women more than men, because women have less schooling and are less informed than men regarding their rights. Furthermore, in many cases, women do not have economic resources, which is an additional barrier for accessing justice services.
12. Men and women utilize the justice system in response to different needs, predominantly in accordance with the roles that society imposes upon them. Accordingly, women are more often plaintiffs in cases involving child support, domestic violence, and dissolution of marriage. Women, generally, are victims of the inefficiencies of the justice sector; for example, the slowness with which the courts operate leaves a large number of cases filed by women unresolved or resolved too late,8 or they are simply left without protection due to a lack of training of the judges.
Institutional Barriers
Professional Training
13. In order to reduce barriers to access, judges and other operators of the justice system need improved training. Lack of training not only involves lack of familiarity with legal provisions, case law, and legal theory on the matters judges are called upon to decide. It also consists of a lack of awareness on the scope of their role as guarantors of due process. 14. A common complaint among the users of justice services is that most judges do not have basic judicial training. Indeed, they indicate that the judges’ excessive formalism and bureaucracy are the principal barriers to the enforcement of contracts. Judges generally make a literal, closed interpretation of law, without considering economic and social factors. They tend to have a bias toward protecting debtors.9 In addition, the judges are not familiar with the fields of law that affect economic development, such as antitrust regulations or the defense of free competition, banking, insurance, and securities. Judicial results are often uncertain, and legal precedents are not always distributed by the higher courts among the judges of lower courts to serve as guidelines, which is prejudicial to legal security. 15. The work of the AMAG is essential so that aspiring judges will have appropriate training not only in terms of legal knowledge, but also appropriate training in ethics, the handling of the process, new information technologies, and, in general, on matters that allow them to be judges, administrators, and supervisors of their courts. During recent decades the management of the AMAG has been adversely affected by changes of authorities and other factors that have held back the development of their educational and training programs. Similarly, the lack of coordination with the CNM and other entities of the sector has hindered the AMAG’s ability to carry out the tasks entrusted to it, define the profiles for judges and prosecutors, and determine application processes for educational programs and promotions to new positions.
8 For the year 2002, it is indicated that almost three-fourths of cases filed by women for child support in 1998 had not yet been resolved. 9 A survey conducted by IFES (International Foundation for Election Systems), an NGO, determined that 24 percent of the SMEs surveyed found excessive legal protection of debtors to be one of the three major barriers for enforcement of judgments (Herrero and Henderson 2003). 24 Entry into the Judicial Profession
16. Lack of internal and external judicial independence10 is one of the major barriers blocking access to justice. A fair, transparent procedure for entry into the judicial profession directly contributes to strengthening the judicial system. As such, the work of the CNM in designating judges and prosecutors is very valuable. For a long time those elected as judges and prosecutors at various levels did not necessarily undergo a transparent process to ensure their performance in their positions and guarantee the independence of their work. Neither merit nor seniority were taken into account for promotions. 17. The CNM has made progress in creating a model for selecting judges to guarantee that human resources will be suitable and appointed solely in keeping with merits and ethical conduct, and not factors that will compromise judicial independence. Nonetheless, the CNM has interpreted its constitutional mandate as authorizing it to ratify judges and prosecutors without having to specify the grounds for that decision. This continues to be met with criticism, especially since the CNM’s decisions cannot be challenged. It is therefore important to continue strengthening the CNM’s management, so that profiles for judges will be developed, providing objective elements for assessing and ratifying judges, in order to avoid criticisms that call certain appointments, removals, and non-ratifications into question. A solution also needs to be found to the problem of temporary appointments11 of judges and prosecutors, in order to assure that they will have greater independence in carrying out their functions. Finally, attention needs to be paid to the low percentage of appointees who actually become judges following the CNM’s selection and appointment of candidates. 18. Finally, the work of the CNM would benefit if the profiles for judges and prosecutors were institutionalized, ongoing performance assessment systems established, and if an effective disciplinary regime were implemented.
Criminal Procedure Reform and Caseload Data
19. Regional Context: Latin America’s criminal procedural reforms aim to make significant institutional changes. During the past century most Latin American countries relied on civil and criminal procedural codes modeled after those of 19th century continental Europe (e.g. Spain, France, and Germany). These early European models were based on largely written procedures and gave the investigation of a crime as well as the adjudication and sentencing phases of the criminal process to the judiciary (usually with a separate investigative or instructional judge for the first phase, as opposed to an independent prosecutor or AG). As European countries began to adopt “hybrid” systems taking the investigation out of the judiciary’s hands and creating a prosecutorial service to handle it, Latin American codes remained more closely linked to the previous inquisitorial tradition.12 The wave of reforms in
10Internal within the Judiciary itself, given the hierarchy; and external, for example, its lack of budgetary autonomy from the Ministry of the Economy and Finance. 11Judges Pro Tem are fully practicing attorneys who are appointed by the presiding judges of the appellate level courts. According to the Judicial Council (CNM), the percentage of Judges Pro Tem in the system ranges between 10 and 20 percent. 12 Some exceptions include Argentina’s Cordoba province which began reforms in the early 1940s and Peru itself, which while retaining the investigative judge, created a separate AGO (prosecution) in 1981. However, Peru’s AGO, like its counterpart in several other countries, did not present its own arguments based on evidence and investigation but operated on the basis of the judge’s written findings. 25 Latin America (since the 1990s) is extremely challenging since it seeks to leap over half a century of incremental progress implemented in European civil law countries.13
20. Benefits of the CPC Reforms in Improving Justice Services: One of the most important ways to improve the Peruvian justice system is to implement procedural reforms in criminal justice, including greater use of oral proceedings, to replace the inquisitorial model. These reforms seek to improve the quality of justice through greater transparency and respect for due process guarantees. 21. In the pre-reform, inquisitorial system the written findings of the investigative judge served as the basis for arguments made available to those judges who would then decide the case. This meant that hearings, even if legally mandated, were often perfunctory at best and sometimes not held at all; moreover in 80 percent of Peru’s criminal cases, changes made in the 1970s resulted in a single judge doing both the investigation and adjudication. Now, under the CPC in adversarial proceedings, opposing parties (prosecutor and defense counsel) argue their cases before an impartial judge. The judge does not investigate the facts and does not weigh any other evidence, other than that offered by the parties. In addition, institutions such as the Attorney General’s Office take on a more important role in the adversarial system in presenting the prosecution’s case. Other changes introduced under the new CPC include stronger due process guarantees (especially as regards the right to defense), alternative sentencing, fast track proceedings for lesser crimes (including the potential for mediated agreements), and restrictions on the excessive use of pretrial detention (formerly the default preference leading to high numbers of individuals on remand, often for periods longer than their probable sentence if found guilty). 22. In Peru, the road toward adopting adversarial proceedings has begun with a few pilot districts (financed by GoP), but has not been fully implemented. In preparation for rolling out the reforms to other districts, justice sector authorities have analyzed the experiences of other Latin American countries so that their efforts can be based on concrete data and the difficulties encountered by other countries can be avoided. One lesson learned is the advisability of establishing a timeline for progressive implementation of the CPC (as done in Colombia, various provinces of Argentina and in Chile). By phasing in the systemic reform, it is also possible to learn along the way and correct implementation problems. This prevents errors from being repeated from one judicial district to another.
23. Since the adoption of the new CPC in July 2006, Peru has embarked on a progressive implementation with the first judicial district being Huaura, followed by La Libertad and others as noted below:
13 See Lisa L. Bhansali and Christina Biebesheimer, Measuring the Impact of Criminal Justice Reform in Latin America, in Promoting the Rule of Law Abroad: In Search of Knowledge (ed. Carothers, Carnegie Endowment for International Peace, Washington DC, 2006), p. 362; see also Langer, Máximo, Revolution in Latin American Criminal Procedure: Diffusion of Legal Ideas from the Periphery, American Journal of Comparative Law, Volume LV, Fall 2007, Number 4. 26 Year Judicial District 2006 Huaura and La Libertad 2008 First Phase (April): Tacna y Moquegua Second Phase (October): Arequipa 2009 First Phase: Tumbes, Piura and Lambayeque Second Phase: Puno, Cusco and Madre de Dios 2010 First Phase: Cajamarca, Amazonas and San Martín Second Phase: Ica and Cañete 2011 First Phase: Ancash and Santa Second Phase: Ayacucho, Huancavelica and Apurimac 2012 First Phase: Huánuco, Pasco and Junín Second Phase: Ucayali and Loreto 2013 First Phase: Callao, Lima Norte and Lima
24. One of the primary achievements of the CPC’s implementation thus far has been a reduction in case processing times, including the average processing time (from filing to disposition) which was between 2.5 and 3.5 years. Following implementation of the CPC, the average duration of the process is between 6 to 4.6 months.14
Average Time Under the New Criminal Procedural Code
(based on type of procedure involved--January-July 2007)
Type of procedure Average duration Maximum duration Minimum duration (in days) (in days) (in days) Indemnization or 187 205 175 Reparation Agreement Judicial Discretion 175 260 35 Regular Procedure 181 224 118 Archiving (closing, 92 118 66 temporary or permanent closure) Summary Judgment 89 245 0
Source: Statistical Unit of the AGO. Annual Report of the Implementation of the New Criminal Procedure Code in the Judicial District of Huaura (January 2008).
Achievements of the 1st Peru Justice Services Improvement Project:
25. Prior to the 1st project, no regular inter-institutional coordinating body existed between these principal sector agencies to coordinate their tasks. As a result of the 1st project, sector coordination among the 4 participating institutions (Judiciary (executing agency); Ministry of
14 USAID-PERU Iris Center, Determinación de la Línea de Base del Tiempo de Procesamiento de Casos en el Distrito Judicial de Huaura, Junio, 2005.
27 Justice, Judicial Council and Judicial Academy) has been enhanced. For example, because these judicial agencies are fundamental to strengthening the predictability of judicial decisions and reducing delays, they work to strengthen joint actions, including regular planning sessions for the rationalization of their respective individual budgets and implementing policies for the execution of the same. These agencies also make joint decisions to enhance the project’s impact, such as prioritizing specific jurisdictions and judicial districts where funds are channeled.
26. Access to Justice—with the Bank’s assistance, the Judiciary and the Ministry of Justice are now jointly implementing legal aid centers together (called ALEGRAS--Asistencia Legal Gratuita) so that users of the system receive legal aid as well as access to the local courts, largely outside the capital and in the poorest areas of Peru (e.g. Tumbes, Huaura, Loreto, Cerro de Pasco, Puno, Huancavelica, among others). In 2007-08, the project also included additional ALEGRAs as well as mobile ALEGRAs to reach distant, poor communities.
27. Prior to the 1st project, the Judiciary had not decentralized decision-making and transferred any significant control over administrative tasks to the local district management. Today, with the Bank´s assistance, results-based and participatory budget preparation is carried out in seven judicial districts (Arequipa, Loreto, Tumbes, Lima, Ayacucho, Huaura, and La Libertad). These budgets provided inputs to the 2008 budget cycle at the central level, while representing decentralized priorities. In addition, in all 29 districts, the following functions have been decentralized: (i) hiring of local staff in each district, (ii) procurement of goods/services up to US$ 15,000 (goods)/US$9,000 (services), and (iii) issuance of criminal records.
28. Prior to the 1st project, there was no joint human resources management strategy or planning (i.e. each agency had its own job profile for judges and other personnel, none of them shared a performance evaluation system and no coordination existed for training). Today, with the Bank´s assistance, the Judicial Academy and the Judicial Council have together, in consultation with the Judiciary and other sector agencies beyond those participating in the Project, developed academic and professional profiles of judges, with profiles for administrative staff under preparation. And, prior to the Project, the Judicial Academy was training judges in subjects unrelated to judicial performance—today, the Judicial Academy is outsourcing training programs and giving priority to judicial management subjects (gestión y despacho judicial).
29. Prior to the 1st project, Peru´s courts were congested with a significant number of persons required to register their legal signature (approximately 50,000/per month with 70 percent in Lima, which represents the largest procedural caseload in the country), which often resulted in long lines, delays, fraud and other forms of corruption. Today, with the Bank´s assistance the Judiciary has purchased and is implementing biometric systems (in Lima and Huaura) with digital recording of fingerprints. This particular use of IT enabled speedier mechanisms for processing registration and virtually eliminates corruption.
30. During preparation of the 1st project, baseline data about the functioning of the justice sector was general and scarce. Today, with the Bank’s assistance, the entire sector (i.e. not only the 4 agencies) is able to consult and use specific indicators to measure user satisfaction (litigants/parties and trial attorneys alike); judicial performance; corruption based on cases under investigation; infrastructure needs, etc.
28 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies PERU: Justice Services Improvement Project II
This annex summarizes recent projects supported by the Bank and other international agencies in the country in the justice sector or related sectors.
1. The first Justice Services Improvement Project financed by the World Bank was a Technical Assistance Loan, which began execution on December 16, 2005 and closed on March 31, 2010. The counterpart agencies were the Judiciary, Ministry of Justice, Judicial Council and Judicial Academy. The amount of lending was US$ 12 million and US$ 3 million in counterpart funding. The overall objective of the project was to set the foundation for a long term, participatory and sustainable reform process for Peru’s justice sector. Specific objectives were: (a) to strengthen institutional capacity to lead the reform process and achieve specific improvements in justice services delivery, in particular in the Judiciary and in selected project districts; (b) to establish human resource management systems that ensure independence, transparency and integrity through work with the Judicial Council and coordinated training through the Judicial Academy; and (c) to enhance access to justice services for Peruvians, particularly the poor through support to civil society and through the Ministry of Justice. The project closed with a rating of Highly Satisfactory.
Donor Project Name Duration of Project Project Amount US$ Participants Region Specific Objective Execution Status Starting End Date Donor Counterpart Counterpart Geographic Date Financing Funding Agencies Coverage AECI Specialized Technical 01/01/2002 12/01/2006 Completed 0 0 Judicial National Promote the specialized training of judges Training Program Academy; throughout Latin America, including Peru, Judiciary and promote the interchange of judicial experience and cooperation as well as strengthen networks COSUDE Access to Justice 08/01/2007 07/31/2010 Ongoing 1,800,000 0 Partnership with National and Contribute to increased access to justice for Program in Rural Peace and Hope Sub-national poor citizens living in rural areas of the Communities– Second Association and level Peruvian Andes, taking into account Stage (PROJUR) Rural Educative (Cajamarca cultural diversity and local customs. Services and Apurimac) Association
29 European Assistance for the 02/01/2005 01/31/2009 Completed 16,000,000 3,125,000 Judiciary; National The project seeks to assist in making Peru's Commission Reform of Peru's Justice Ministry of judicial system more efficient and System Project – Justice; National accessible to all citizens JUSPER Judicial Council; Judicial Academy MP, TC, CNM
European Multi-Year Democracy 11/01/2001 04/19/2005 Completed 1,375,000 250,000 IDL National Strengthening Justices of the Peace (Justicia Commission and Human Rights de Paz) Program for the Andean Community, Peace Justices Program GTZ Strengthening the 05/01/2004 05/31/2008 Completed 470,000 0 CONADIH National level Strengthen the capacity of CONADIH in National Commission for the implementation of International the Study and Humanitarian Law within Peru's national Application of legal framework. International Humanitarian Law (CONADIH) GTZ Support for Criminal 06/01/2003 06/30/2010 Completed 3,333,000 450,000 Ministry of National Support for the criminal justice institutions Procedure Reform in Justice, MP in the implementation of the new criminal Peru procedure laws IDB Program for the 08/09/2007 TBD Under 1,180,000 0 Ministry of National Establishment of a fund (FAPEP) for the Modernization of the preparation Justice preparation of a multi-year program with a Administration of the focus on support to the Ministry of Justice Justice System in Peru (Corrections System) and Ministry of the Interior (Police). USAID Institutional 11/05/2002 03/30/2004 Completed 550,000 770,630 Ministry of National- Support the (re)institutionalization of the Strengthening for Public Justice Subnational Public Defender System as well as the Defenders (Defensoría (Arequipa, continuation and expansion of legal aid for de Oficio) Ayacucho, prisoners in select criminal proceedings. Huanuco, Libertad, Lambayeque, Lima y Ucayali) USAID Institutional 04/07/2003 12/31/2004 Completed 233,000 66,667 Presidency of the National Support the institutional strengthening of Strengthening of the Supreme Court, (Lima) the Judiciary's Presidency while the Presidency of the Judiciary Judiciary establishes its own institutional Judiciary capacity to manage and lead reform process and the sector's development
USAID Institutional 09/20/2002 09/30/2006 Completed 2,151,029 668,284 Ombudsman National-Sub- Strengthen the presence of Ombudsman Strengthening of the (Defensoría del National Offices at the national and sub-national Ombudsman’s Office for Pueblo) (Ayacucho, levels 30 the supervision of State Cusco, Reform and Promotion Huanuco, of Citizen Monitoring Junin, puno, San Martin y Ucayali) USAID Justicia Viva (coalition 09/06/2002 12/31/2005 Completed 3,203,236 808,318 Legal Defense National-Sub- To develop and strengthen participation and of NGOs and judges) Institute (IDL); National monitoring by civil society and other Association of stakeholders in the reform processes and the Judges for administration of justice in Peru Democracy and Human Rights; Law Faculty of the PUCP
USAID Consultant Services to 05/19/2003 08/23/2005 Completed 2,350,000 0 IRIS Center, National Assist in the organizational reform efforts Assist in the University of (Ayacucho, related to justice sector modernization, Implementation the Maryland Cusco, particularly in the criminal system Justice Sector Huanuco, Modernization Program Junin, Loreto, Pasco, San Martin y Ucayali) USAID Consultant Services to 09/05/2003 08/23/2005 Completed 2,398,768 0 IRIS Center, National-Sub- Assist in the implementation of a Justice Sector University of National specialized system for the administration of Modernization Program Maryland (Lima) commercial law cases through a pilot program in district courts and appellate civil courts USAID Modernization of the 10/28/2005 10/31/2006 Completed 100,000 33,400 Judiciary Regional Improve the infrastructure of commercial Commercial Courts in (Lima) courts for which technical assistance is Lima being provided for under another USAID program ASDI Special prosecutors for 10/31/2002 06/30/2007 Completed 144,000 0 Special National-Sub- Implement the recommendation of the Forced Disappearances, prosecutors for national Inter-American Commission of Human Extrajudicial Executions Forced (Ayacucho, Rights regarding forced disappearances, and Exhumations Disappearances, Huancavelica y centralize and coordinate exhumations of Extrajudicial Junin) secret graves, strengthen the Specialized Executions and prosecutors and propose a strategy for Exhumations/UN action of the MP, once the final report has DP been received by the CVR ASDI Redoubling of Work in 11/01/2007 06/30/2009 In 333,333 777,565 Special National-Sub- Strengthen the capacity of the Public Exhumations Execution prosecutors for regional Prosecutor's Office (Ministerio Público) to Forced investigate cases of Disappearances, "disappearances"through implementation of Extrajudicial the Forensic Plan. Executions and Exhumations/UN DP 31 Annex 3: Results Framework and Monitoring PERU: Justice Services Improvement Project II
Results Framework
PDO Project Outcome Indicators Use of Project Outcome Information
To improve the quality of Reduction in time/speed of trial (from To monitor progress made service delivery by the beginning to end of trial process). towards achieving the Participating Institutions. project development For Criminal Procedure Code (CPC) objectives activities, # of cases in which alternative sentencing options are applied.
To enhance access to justice Increase in number of consultations in To monitor progress made with a focus on citizens’ needs legal aid centers administered by Ministry towards achieving the for justice services. of Justice. project development objectives
Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring Component 1: Improved Justice Services Delivery
Enhance celerity and attention Reduction in the average number of days To evaluate fulfillment with to user demands in processing required in criminal justice processes in the intermediate outcome. of cases. the 3 judicial districts.
Management information Increase in the number of courts and systems (MIS) introduced, prosecutors’ offices providing information To assess efficiency and strengthened ,and used to track to district MIS. management improvements processing time and other in justice services delivery. aspects of performance
Strengthening of court Increase in the number of judicial districts . administration at the central with administrative staff trained in results- and district levels based management.
Strengthening the capacity of Reduction of time taken by the IML to the IML (Legal Medical deliver expert technical opinions. Institute) to deliver expert technical opinions
32 Component 2: Improved Human Resources Management Capacity
Improved capacity of the New standards developed for evaluation To monitor the advances in Judicial Council to evaluate of judges and prosecutors and increase in enhancing capacity to judges and prosecutors, percentage of judges and prosecutors evaluate judicial and including candidates for these evaluated by new standards. prosecutors’ performance positions. and the impact of institutional strengthening of the AMAG and the AMAG and Prosecutors’ Number of lecture hours per participant CNM in those areas. Training School strengthened and number of participants trained for “on-the-job” training and according to their jurisdictional to reflect trainees’ needs specialization.
Component 3: Enhanced Transparency and Access to Justice To assess institutional Effectiveness of ADR services Increase in the percentage of cases capacity to provide greater through the Ministry of Justice resolved through ADR mechanisms in the access to users and across the judicial districts. participating judicial districts. potential users, including combating corruption and strengthening transparency. Enhanced physical Increased number of ALEGRAs accessibility to respond to the refurbished in peri-urban and rural areas. needs of poor peri-urban/rural populations
Enhanced efficiency by the Reduction in response time by OCMA to OCMA in handling complaints complaints filed (to be measured of judicial corruption. annually).
Greater access to information 15 point increase in the index of to the public from each accessibility to information through the participating institution. Internet (average of the 5 participating institutions) . Component 4: Project Management, Monitoring and Evaluation Strengthened capacity of the Percentage of core staff of the PCU, To ensure compliance with PCU, including improved including procurement specialist, technical and fiduciary procurement, financial treasurer, accountant and project aspects of project management and manager, recruited and in place. execution. monitoring and evaluation capabilities. Annual project reports produced.
33 Arrangements for results monitoring
Target Values Data Collection and Reporting Project Outcome Indicators Baseline YR1 YR2 YR3 YR4 Total Frequency and Data Collection Responsibility for Reports Instruments Data Collection Reduction in time/speed of TBD - - - - TBD Annual Judiciary records Judiciary trial (from beginning to end of trial process). For Criminal Procedure Code 0 - - - - TBD Annual AGO/Judiciary records AGO/Judiciary (CPC) activities, # of cases in which alternative sentencing options are applied. Increase in number of 100,000 131,250 181,250 231,250 250,000 250,000 Annual Ministry of MINJUS consultations in legal aid Justice/ALEGRA centers administered by records Ministry of Justice. Intermediate Outcome Baseline YR1 YR2 YR3 YR4 Total Frequency and Data Collection Responsibility for Indicators Reports Instruments Data Collection Component 1 – Improved Justice Services Delivery Reduction in the average 209 days number of days required in 835 days - - - - (75% Annual Judiciary records Judiciary criminal justice processes in decrease) the 3 judicial districts with Project intervention. Number of courts and 0 - - - - TBD Annual Judiciary and AGO Judiciary/AGO prosecutors’ offices providing records, by district information to district MIS. Number of judicial districts 10 14 20 25 29 29 Annual Judiciary records Judiciary with administrative staff trained in results-based management. Reduction of time taken by 20 days 1 day Annual AGO records AGO the IML to deliver expert technical opinions.
Component 2 – Improved Human Resources Management Capacity New standards developed for 0 1 1 Annual CNM records CNM evaluation of judges and prosecutors.
34 Target Values Data Collection and Reporting
Intermediate Outcome Baseline YR1 YR2 YR3 YR4 Total Frequency and Data Collection Responsibility for Indicators (ctd) Reports Instruments Data Collection Increase in percentage of 0 0 100% Annual CNM records CNM judges and prosecutors evaluated by new standards. Number of lecture hours per TBD TBD Annual AMAG/AGO school AMAG participant and increase in records number of participants trained according to their jurisdictional specialization. Component 3 – Enhanced Transparency and Access to Justice Increase in the percentage of 0 - - - - 50% Annual MINJUS records MINJUS cases resolved through ADR mechanisms in the participating judicial districts. Increased number of 25 30 38 46 49 49 Annual MINJUS records MINJUS ALEGRAs refurbished in peri-urban and rural areas. Reduction in response time by TBD - - - - TBD Annual OCMA records Judiciary OCMA to complaints filed. 15 point increase in the index 70% 70% 75% 80% 85% 85% Annual CEJA records PCU of accessibility to information /MINJUS/CNM/AMAG through the Internet (average of the 5 participating institutions). Component 4: Project Management, Monitoring and Evaluation Percentage of core staff of the 0 100% 100% 100% 100% 100% Annual PCU PCU PCU, including procurement specialist, treasurer, accountant and project manager, recruited and in place. Annual project reports 0 All All All All Draft final Annual PCU PCU produced required required required required reports reports reports reports reports produced produced produced produced produced
35 Annex 4: Detailed Project Description PERU: Justice Services Improvement Project II
Project Component 1 – Improved Justice Services Delivery (total US$16.66million; IBRD US$ 11.09 million)
The objective of this component is to support improvements in procedural processing time and attention to users of justice services. The Project will provide technical assistance (TA) to improve the quality and timeliness of services offered by the Participating Institutions, specifically to the Superior Courts and selected regional AGOs. A subcomponent will address the consolidation of strategic planning and result-based management through ‘deconcentrating’ specific procedures and improving planning capacity in all of the 5 Participating Institutions (Judiciary, Ministry of Justice, AGO, Judicial Council and Judicial Academy). Another subcomponent will optimize the operation of the courts and AGOs through a more articulated approach, coordinated between administrative and jurisdictional functions, including support for TA, information technology (IT), minor works and strengthening central administration functions through change management. A specific area of focus will be the implementation of the Criminal Procedure Code (CPC) in all 5 Participating Institutions to conduct cases under the new CPC and introduce oral proceedings more broadly. Each of the participating institutions requires technical assistance for the implementation of the new CPC and, while some of the technical assistance will be institution-specific, the Project will also focus on enhancing inter- institutional coordination.15
1.1 Consolidation of Strategic Planning and Results-based Management Subcomponent
The leadership and management of the Participating Institutions have agreed that deconcentration is a priority for the modernization of justice services. To establish an optimal systemization of decisions and increase management efficiency, the Project will finance IT, TA, and training for a nexus between the management of budgetary resources and support for district or regional needs. The Project will also focus on strengthening the strategic planning in the Participating Institutions with TA for the design and implementation of mechanisms for coordination, monitoring and performance management. This includes budgetary programming for judicial resource allocations. Improvements in service delivery require sector institutions to engage in greater inter- and intra- institutional coordination. The Project will finance TA for the design and operation of institution-specific mechanisms of coordination as well as identify joint, sector-wide initiatives such as results-based budgeting in sector agencies.
15 Specific support for implementation of the CPC, which has been cleared by and defined in consultation with the Legal Vice-Presidency of the World Bank, would be provided through training, IT equipment and IT-specific training, rehabilitation of existing infrastructure, technical assistance for the establishment of a scientific laboratory and a communications strategy specific to issues of the CPC.
36 1.2 Capacity Building Subcomponent
1.2.1 In order to optimize the operation of the courts and regional AGOs, and to improve the reception and processing of procedural documentation, the Project will finance TA and IT for the design and implementation of a case filing system in courts of the Judiciary. Equally important for both parties and their representatives is the ability to consult with case files as needed in order to be informed of the status of a case. To this end, the Project will finance the design of integrated technological platforms and statistical plans as well as the purchase of IT, equipment (software and hardware), minor civil works, and training for standardized case management, including a system of “information kiosks” available in the courts and electronic consultation of case files.
1.2.2 In order to improve information management systems between justice sector institutions and online access to information for the public, the Project will finance TA for the adjustment of existing information applications to the web portal of the Judiciary and strengthen the capacity for better court and administrative management. The Project will also support the strengthening of information systems within the AGOs and with other justice sector agencies through the purchase of IT, TA and training. Within the Judiciary, the Project will also scale up the notifications system to include all judicial districts, through the provision of IT, training and TA.
1.2.3 In addition, this subcomponent would seek to improve the efficiency (measured by timeliness and increase in celerity of judicial processes) and quality of services which could promote greater competitiveness. For this, the Project would finance TA and training in service delivery mechanisms, specialized jurisdictional training in labor, commercial, family and environmental law, as well as the design of regulations and a pilot plan for introducing oral proceedings in labor and civil cases in selected judicial districts. In addition, in order to improve the predictability and enforcement of judicial decisions, the Project will finance TA, IT and training for the design of mechanisms which facilitate the introduction of biometric services in 3 additional judicial districts, and the development of a unified registry.
1.3 Criminal Procedure Reform Subcomponent
1.3.1 This Subcomponent will also focus on strengthening the capacity of the Participating Institutions to conduct cases under the new CPC and introduce oral proceedings more broadly. Peru has begun implementation of the CPC in a staged process, thus learning from experiences in smaller departments and by modifying implementation accordingly. The Project would provide support for implementation of the CPC, which has been defined in consultation with the Bank’s Legal Vice-Presidency, through:
i. Training: this would include providing TA support for: (i) administrative management systems to coordinate information under the CPC for all 5 agencies—from the evaluation of existing systems to the design and development of modern case management; (ii) specialized training for prosecutors (AGO) and public defenders (Ministry of Justice) on preparing oral arguments; (iii) study tours to jurisdictions with similar CPC on-going reforms and courses in criminal justice based of fictional cases; and (iv) data collection of
37 statistics on levels of crime and TA for the design and implementation of monitoring & evaluation systems.16
ii. IT equipment and IT-specific training: this would include (i) the purchase of equipment (hardware and software) for managing caseload data among the 5 institutions; (ii) interconnectivity of IT systems between the AGO’s regional and central offices; (iii) comparative analysis, design and training for staff of the 5 agencies on the implementation of M&E frameworks under the CPC.
iii. Infrastructure rehabilitation: it is likely that both civil and criminal courts, some AGOs (at least 6) and MINJUS public defense offices require refurbishments similar to those undertaken during the first project in other agencies, which is necessary to comply with the new characteristics of the CPC. For example, the CPC requires that courtrooms be refurbished to meet the needs of oral proceedings, including modern digital recording and IT equipment (e.g. electrical refitting in older buildings) since arguments are recorded on CDs and/or televised, rather than keeping paper files. The modification of infrastructure will focus on judicial districts based on the chronology of the CPC’s implementation.
iv. Communications Strategy: This will include the design of a joint communications strategy among the 5 institutions, in coordination with the Inter-institutional Commission for Implementation of the CPC (chaired by the Ministry of Justice). This includes financing of pamphlets in local languages on the new roles of judges, prosecutors, public defenders and other actors in the justice system, and TV and radio spots on the CPC so that citizens can be informed of this fundamental reform.
1.3.2 To ensure that the results of medical exams in legal cases are obtained as soon as possible during the investigative phase and important evidence is not lost (at present, without regional labs, medical specimens have to be sent to Lima for processing and often do not receive immediate attention), the Project will finance support for TA, training and refurbishment for the conversion of the Legal Medical Institute (under the AGO) into a scientific, forensic laboratory, to be based in Lima. The Project would also provide TA and training for staff of the Legal Medical Institute, according to new criteria established under the CPC.
Project Component 2 – Improved Human Resources Management Capacity (total US$ 4.61 million; IBRD US$ 3.09 million)
This component seeks to enhance the capacity of personnel in the Participating Institutions through a performance-based methodology of selection, evaluation, promotion and sanction, and through more integrated training programs. This process would include a greater focus on
16 The authorities would like to maintain some flexibility regarding training. Indeed, this flexibility and modernization of training is one of the fundamental activities needed in the justice sector (i.e. offering distance learning to include regional offices in the districts, “training of trainers” programs with personnel from districts where the CPC is already being implemented and where it will soon enter into effect, etc.). The Project does not include the police (which fall under the Ministry of the Interior and are not a participating agency in the Project).
38 reforming ‘institutional values’ including improving interpersonal skills, the work environment and a stronger service vocation toward the population. One subcomponent will focus on strengthening the management capacity of the CNM and the consolidation of the management of the Judicial Career Law. Activities will include the development of professional, merit-based profiles for magistrates and judicial personnel according to the Judicial Career Law, among others. These actions will be jointly undertaken among the 5 Participating Institutions so as to share a common vision for the development of job profiles and competencies, from judges to prosecutors to public defenders. Another subcomponent will develop the specific skills of judges, prosecutors and other personnel through support to the Judicial Academy (AMAG). Activities will include systemizing the identification of learning needs, the development of planning and adapted learning tools and the design and implementation of coordination mechanisms with other (other than the 5 participating agencies) institutions of the sector, including civil society organizations.
2.1. Consolidation of Judicial and Prosecutorial Management Subcomponent
2.1.1 The specific objectives of this subcomponent are: (a) to retain quality human resources for the Judiciary and provide them with appropriate professional development; and (b) to introduce modern concepts of human resources planning and management into key sector institutions (MINJUS, Judiciary, CNM, AGO and AMAG) and develop their capabilities to apply them.
2.1.2 The Project will provide the CNM with the technical assistance required to reengineer internal practices and resolve bottlenecks in the selection process. It will also facilitate inter- institutional coordination with other beneficiaries (Judiciary, AGO and AMAG) in the evaluation process, and in the post-selection training for the newly appointed candidates. This will lead to the development of a coherent selection methodology so as to improve current job profiles, adopt consistent selection criteria, and create appropriate examination mechanisms. The Project will provide TA, minor civil works, equipment and training for the National Performance Evaluation Commission of the CNM. TA will be provided for the reengineering of evaluation and ratification processes and for the introduction of oral proceedings into disciplinary hearings.
2.1.3 In order to strengthen the management capacity of the CNM, the Project will provide TA for modifications to the regulations of the Judiciary to be consistent with recent legislation on the Judicial Career Law. The Project will finance equipment, IT and training for improvements in information systems and increased access to data on legal norms, doctrine and jurisprudence for judges, prosecutors and other judicial personnel.
2.2 Integrated Judicial Training Programs Subcomponent
2.2.1 Under the 1st project, AMAG conducted an in-depth institutional assessment, and prepared a strategic plan that allows it to play a major role in the delivery of justice services. This assessment highlighted the core training needs of judicial and administrative personnel and helped with the development of training programs and education material and fostered research and teaching methodology adapted to those needs. In this context, this Project will provide the
39 required TA to redefine the “business processes” of the AMAG. The overall goal of these activities in the second project will be to help the AMAG to shift its focus from just training judges and prosecutors to become a part of a justice services modernization process, by first defining how performance should be improved and then designing courses to achieve that end (for judges, prosecutors, public defense staff of MINJUS, and other judicial and administrative personnel). More specifically, the Project will reinforce the Academy’s three existing programs: PROFA (entrance examination for magistrates), PAP (continuing legal education) and PCA (training program for the promotion of magistrates). This includes support for TA, minor civil works, equipment, IT systems, training of trainers, and training.
2.2.2 So as to better prepare those interested in joining the Judiciary, the AMAG also seeks to develop a specialized curriculum, internship program with the courts and AGOs, as well as standardize the monitoring of academic services. One such example would be to identify, systematize and disseminate best practices in the management of training programs linked to the implementation of the CPC. Under this subcomponent, the Project would also finance the installation of modern IT systems for training, including electronic libraries, virtual information centers, videoconferencing facilities and other new learning technology for AMAG as well as training in criminal law for magistrates and judges in accordance with new CPC procedural reforms.
Project Component 3: Enhanced Transparency and Access to Justice (total US$ 5.76; IBRD US$ 3.84)
This component aims to develop a stronger anti-corruption strategy for the Judiciary and to enhance access to justice for resource-poor citizens, including support to the Ministry of Justice (ALEGRAs). The first subcomponent will support the OCMA (Anti-corruption Office of the Judiciary) and ODECMAs (regional offices) through TA for a more consistent application of existing regulations, dissemination of the functions and achievements of the OCMA, and enhancing the efficiency of their activities and greater respect from the population towards judicial decisions. This first subcomponent will also support the design and implementation of a communication strategy focused on promoting a cultural change both internally to sector agencies and externally among Peruvian society. A second subcomponent seeks to enhance access to justice for citizens, including support for legal aid and conciliation services through the Ministry of Justice (ALEGRAs) and through promoting participatory campaigns with civil society. This second subcomponent will also support the development of a public education campaign and provide TA and equipment to the Ministry of Justice.
3.1 Strengthening Transparency and Anti-corruption Efforts Subcomponent
3.1.1 The lack of accountability and integrity is one of the major barriers to access to justice. This subcomponent aims to: (a) strengthen the capacity of the Judiciary to sanction serious incidents of corruption through the training of officials, by ensuring that internal control bodies are equipped with effective investigative tools and techniques for the identification of responsible actors; (b) establish inter-institutional coordination mechanisms to bring together the units in charge of curbing administrative corruption in the justice sector; and (c) develop 40 partnerships with CSOs and users to encourage their oversight of judicial functions through an existing responsive complaint systems. For this, the Project will finance TA, IT and training. 3.1.2 This subcomponent also aims to strengthen the OCMA through the development of an adequate legal framework to regulate its operation and the development of specific skills of staff of the OCMA through: (a) training for judicial personnel on ethics and to foster greater client orientation; (b) better communication to the population of the importance of the judicial service and judicial decisions, among others.
3.2 Promotion of Access to Justice
3.2.1 The Project will scale up services and expand the presence of the legal aid centers known as ALEGRAs (Asistencia Legal Gratuita) at the national level, among other mechanisms. ALEGRAs provide legal aid services for the poor, conciliation services and public defender services. The Project would finance TA, IT, equipment, minor civil works and training for justice sector operators working in the ALEGRAs to enhance the quality of services provided and expand the current geographic coverage. Specific activities include the creation of additional ALEGRAs and the development of training programs for legal aid providers (public defenders and personnel providing alternative dispute resolution services).
3.2.2 This subcomponent also aims to strengthen the management of services provided by MINJUS, through the design and implementation of user-centered service delivery strategies and mechanisms including: (i) development of basic statistical systems to monitor performance and user demand patterns; (ii) carrying out of an evaluation of the feasibility of innovative approaches to service delivery; (iii) preparation of proposals for a fee system consistent with socio-economic profiles of users; (iv) impact evaluation of services delivered; (v) needs assessment of users demands for these services, including small civil works of center facilities and innovative legal aid and conciliation service delivery, such as indigenous language interpreter programs; and (vi) analysis and case studies of best practices in service delivery. The Project would also support greater access to Peruvian legislation for legal practitioners and the population in general through the provision of TA and IT equipment for the development of an online platform called the Sistema Peruano de Información Jurídica (SPIJ).
3.2.3 One of the activities to be scaled up is the public legal education program called “PRONELIS” which supports TA for public information about the justice sector. Dissemination of information to the public will include consultations with community leaders, local authorities and representatives of grassroots organizations in order to determine the best form to serve the information needs of the community. Areas of public outreach activities will likely include (but are not limited to the following: (a) basic legal rights; and (b) publication of statistics about the real costs of judicial processes and strategy to overcome those costs.
41 Project Component 4: Project Management, Monitoring and Evaluation (total US$ 2.97 million; IBRD US$ 1.98)
This component seeks to ensure the continuity of and to strengthen the Project Coordination Unit (PCU), including strengthening procurement, financial management and monitoring and evaluation capacities within the Judiciary (where the PCU is located) to implement the Project on behalf of the 5 Participating Institutions. The Operational Manual of the first project has been revised and updated to make adjustments based on lessons learned in the administration of the PCU (e.g. having participating agencies transfer counterpart funds to the PCU so that providers only need to receive one payment), and to include technical specialists knowledgeable of the work of the AGO as the additional agency.
4.1 A single PCU will be responsible for the administration of procurement, disbursement and financial management matters of this operation. The PCU will report directly to the Project Steering Committee, comprising high-level representatives of each of the five Participating Institutions, to provide policy oversight and guidance to the Project, and will be chaired by the President of the Supreme Court. The PCU will also be in charge of project monitoring and evaluation, and each participating institution will assign a liaison to the PCU for the purposes of implementation.17
4.2 To strengthen the management, monitoring and evaluation capabilities of the participating institutions and selected project districts, the Project will finance: (i) the provision of technical assistance and training to the national and local staff of the Participating Institutions for the carrying out of Project activities; (ii) strengthening the PCU’s administrative and operational capabilities; (iii) carrying out Project financial audits; (iv) establishment of monitoring and evaluation arrangements through: (a) carrying out of Project monitoring and effective consensus-building activities; (b) carrying out of diagnostic assessments of participating institutions, surveys, and annual evaluation reports of Project implementation; and (c) the organization of semi-annual workshops with staff of participating institutions and/in selected project districts.
17 Note: given that the Project Coordinator is based within the Judiciary, the President of the Supreme Court may (or may not) assign a liaison for the Judiciary itself. 42 Annex 5: Project Costs PERU: Justice Services Improvement Project II
Table 1: Project Cost by Component
Counterpart IBRD Loan Total Project Cost By Component and/or Activity funding US $million US $million US $million
1. Improved Justice Services Delivery 11.09 5.57 16.66
2. Improved Human Resources Management 3.09 1.52 4.61 Capacity
3. Enhanced Transparency & Access to Justice 3.84 1.92 5.76
4. Project Management, Monitoring and Evaluation 1.98 0.99 2.97
Total Baseline Cost 20.00 10.00 30.00 Physical Contingencies Price Contingencies Total Project Costs 20.00 10.00 30.00 Interest during construction Front-end Fee 0.0 0.0 Total Financing Required 20.00 10.00 30.00
43 Annex 6: Implementation Arrangements PERU: Justice Services Improvement Project II
1. One of the achievements as well as an important ‘lesson learned’ under the 1st project is the need for close coordination among sector agencies. The high-level and policy aspects of the Project will be overseen by a Steering Committee (Comité Directivo) which is headed by the President of the Supreme Court, and includes the heads of the other agencies involved. In preparation for the second stage, the Steering Committee now includes as a full member the Attorney General’s Office. The Steering Committee would continue to be chaired by the Chief Justice or President of the Supreme Court. Specifically, the members of the Steering Committee are: (i) the President of the Judiciary (or Chief Justice of the Supreme Court); (ii) the Attorney General; (iii) Minister of Justice; (iv) President of the Judicial Council; and (v) President of the Judicial Academy. The Steering Committee, the functions of which are described in the Operational Manual, will be supported by a Project Coordination Unit (PCU) which will act as the technical secretariat to the Steering Committee.
Project coordination and management
2. A Project Coordination Unit (PCU) will be responsible for the administration of the Project, including overall management, procurement, disbursement and financial management matters of this operation. A singular PCU, which is already located in the Judiciary (from the 1st project and continuing to function), will be shared among the 5 Participating Institutions. The PCU will coordinate with regional, district or local level staff of the Participating Institutions and other, non-Project interlocutors as needed for the carrying out of the Project’s activities. The PCU will also be in charge of the monitoring and evaluation (M&E) of the Project. Each institution will assign a liaison (enlace) to the PCU for the purposes of implementation to coordinate the financing, implementation and M&E with the PCU’s technical specialists assigned to each component (or sub-component as may be required).
3. A Subsidiary Agreement (Acuerdo Subsidiario), to be signed between the MEF and the Participating Institutions, will set out the responsibilities of the Participating Institutions for an efficient coordination throughout Project implementation, including specific arrangements between the MEF and the Participating Institutions, including the Judiciary, MINJUS, CNM, AMAG and AGO.
4. Monitoring and Evaluation Arrangements. The Project will offer the Participating Institutions the opportunity for an efficient dialogue among with other justice sector institutions, while providing them with technical support and knowledge sharing required for the development of coherent changes. The Bank will assess progress during Project implementation, identify major issues and propose measures to ensure that the Project objectives remain relevant while risks are minimized.
5. This Project will require continuous monitoring and evaluation, as well as effective consensus building. Key performance indicators to measure outputs and outcomes are proposed in Annex 3. Institutional assessments of sector agencies undertaken as part of Project preparation
44 the gathering of baseline data where needed will contribute to the measurement of specific performance indicators. Periodic surveys, as well as the semiannual Project Reports of the PCU will assist in measuring the progress in service delivery.
6. To promote Project integration and learning across offices, annual workshops with staff of all the agencies participating in the Project will be held to review progress achieved, agree on required adjustments, and review proposals for Annual Operating Plans (AOP) for the following year. AOPs will include, inter alia: (i) a description of Project activities to be carried out during the year following the date of presentation of such plan (based on the list of prioritized activities under each Participating Institution’s responsibility); (ii) a timetable for the implementation of said activities; and (iii) a financial plan, including a budget plan (detailing the amount of counterpart funds to be provided in the relevant year).
7. The leadership of the Steering Committee will provide an additional vehicle for feedback and development of broader consensus during project implementation. Semi-annual progress reports will include an evaluation of activities carried out during the previous semester, plus detailed activities and estimates for the subsequent one, as well as expected Borrower and Bank contributions. A “Project launching” workshop will take place shortly after effectiveness with participation of PCU staff, key decision-makers of the participating institutions, and representatives of selected districts or local communities. The PCU will furnish to the Bank, within six months after the Closing Date, the standard Implementation Completion Report prepared by the Borrower.
8. To strengthen the management, monitoring and evaluation capabilities of the Participating Institutions, the Project will finance: (i) provision of technical assistance and training to the national and local staff of the participating agencies for the carrying out of Project activities; (ii) strengthening the PCU’s administrative and operational capabilities; (iii) carrying out Project financial audits; (iv) the establishment of monitoring and evaluation arrangements through: (a) carrying out of Project monitoring and effective consensus-building activities; (b) carrying out of diagnostic assessments of Participating Institutions, surveys, and annual evaluation reports as noted above; and (c) the organization of semi-annual workshops with staff of Participating Institutions and selected project districts.
45 Annex 7: Financial Management and Disbursement Arrangements PERU: Justice Services Improvement Project II
Executive Summary of Financial Management Assessment
1. As part of the preparation process of the Peru Justice Service Improvement II, a financial management assessment has been undertaken in accordance with OP/BP 10.02 and the FM guidelines18. The objective of the assessment is to determine whether the implementing entity has in place acceptable financial management arrangements, notably a sound budgeting, accounting, reporting, funds flow, financial reporting, auditing, and internal control system, to properly manage and account for all project proceeds and to produce timely, accurate and reliable financial information for general and Bank special purposes. The assessment was conducted in May – December 2009, and follow-up visits up to September 2010.
2. The new operation will be implemented by the existing Project Coordination Unit (PCU) located in the Judiciary, which has implemented the first Justice Services Improvement Project financed through loan IBRD 7219-PE. The PCU operates as an autonomous executing unit and reports to the General Manager of the Judiciary. The new operation will have the participation of five institutions, namely: the Judiciary, the Judicial Council (CNM), the Judicial Academy (AMAG), the Ministry of Justice (MINJUS), and the Attorney General’s Office (AGO); each of them will support the Project with financial resources. The financial management arrangements proposed for this new operation are significantly based on those followed by the previous operation closed in March 2010, which have proved to be acceptable to the Bank. On this respect, the financial management assessment has focused on evaluating the continuity of the FM arrangements, so as to ensure the appropriateness of processes and procedures. On this aspect, the Operational Manual has been updated reflecting the FM arrangements for the new operation (new chart of accounts, IFRs according to the functionality of expenses, and audit arrangements). With regard to the continuity of the PCU and its core staff, the Government of Peru has requested the application of retroactive financing, which the Bank has included in the project documents. In addition, the team is also exploring the possibility of the Government’s willingness and ability to fund the PCU staff with counterpart funds should retroactive financing not be sufficient to cover the gap between the two stages of the first and second projects. Some actions pending as of the date of the FM assessment include: the plan for PCU continuity and the signing of a Subsidiary Agreement between the Ministry of Economy and Finance and the 5 Participating Institutions recognizing the utilization of a sole PCU. The signing of the Subsidiary Agreement is considered an Effectiveness Condition under the Loan Agreement.
3. The project inherent and control risks are rated moderate (M). Thus, the overall risk rating is also rated moderate (M).
4. On the basis of the review performed and progress achieved so far, the financial management team concludes that the proposed arrangements – as designed – can be considered
18Financial Management Practices in WB-financed Investment Operations issued by the FM Sector Board (FMSB) on November 3, 2005 46 acceptable to the Bank, subject to the effective and successful implementation of the remaining actions.
SUMMARY OF FINANCIAL MANAGEMENT ASSESSMENT
Country Issues
5. During 2008, in the context of the preparation of a series of Development Policy Loans (PDLs), the Bank undertook a review of Peru’s public financial management (PFM) and the reforms undertaken to strengthen it. These PFM reforms are based on the recommendations of the 2001 CFAA, the 2004 IMF Fiscal ROSC, the 2005 CPAR, and other GoP initiatives to modernize its public institutions over the last several years. The review was further complemented by a joint assessment with other development partners following the Performance Measurement Framework (PEFA) and the results of the assessment have been shared with the GoP, and the final report has been accepted by the GoP and has been published. The results of the PEFA assessment, from the perspective of the six budget dimensions measured by the framework, concluded that, overall, PFM in Peru is functioning well and in line with international best practices. A few areas remain in need of improvement and in many cases reforms are still in progress, with other corrective measures or improvements still to be prioritized and embedded within the PFM reform agenda in the medium and long term. The continuity of the improvements in the systems and institutions will enable Peru to further strengthen the country’s PFM system, which will play a decisive role in supporting poverty alleviation and modernization of the state.
6. The most critical reforms to improve the management of public finances and efficiency of public spending initiated during the last couple of years are well advanced and some of them were completed in early 2009. A new budget classification system and a new accounting chart of accounts have been adopted in line with international standards and are operating in all government ministries and agencies. The implementation of the TSA at the central government level is progressing well with its coverage sufficient enough at this time to meet international standards, and the foundations for performance-based budgeting system have made steady progress with the development of well-defined measures of performance that link up priority policies and programs. The reforms in the area of performance-based budgeting included several policies and procedural changes and expansion of the strategic programs in the 2009 budget. Continued efforts are currently underway to fully implement the TSA and ensure common standards and timely/adequate budget and financial reporting by all levels of government (central and sub-national).
7. The financial management system SIAF is a cornerstone of the country’s reform process, and as such the tool requires constant adjustments to support changes in policies, processes and institutions. The design and implementation of the new system (which the GoP decided to undertake last year after an evaluation of the current system platform) is critical to support the PFM reform agenda. On fiscal transparency, Peru ranks about average among Latin American countries. In the last few years, Congress approved a Law on Transparency and Access to Public Information (2003) and its regulations; also, SIAF became available through an on-line portal
47 “Consulta Amigable”, and a pilot system for users’ assessment of government services was launched. With the further development of the new SIAF and continued dissemination of budgetary information through the web, Peru’s ranking should improve considerably.
8. Similar to the rest of the portfolio and as explained below, proposed projects will use and follow country arrangements for budgeting and accounting, and from there on, budget will be executed through the government integrated financial management system “SIAF – sistema integrado de administración financiera”.
Risk assessment and Mitigation
9. The FM risk assessment presented below constitutes a summary of the issues related to the project as a whole, as of the date of this document. On such basis, the project inherent risk of the project has been rated as moderate (M). In relation to the FM control risk, it is also considered moderate (M). Thus, the overall risk rating is rated as moderate (M) at this time. The following table presents the risk assessment, as well as the risk mitigating measures incorporated into the design of the Project and the financial management implementation arrangements.
Table: Risk Assessment and Mitigation Measures
Risk Residual Risk Mitigating Measures Incorporated into Project Condition of Risk Design Negotiations/Board or Rating Effectiveness? Inherent Risk Country Level L PFM in Peru is functioning well and in line with international best practices. Critical reforms to improve the management of public finances and efficiency of public spending initiated during the last couple of years are well advanced and some of them were completed in early 2009.
Entity Level M The Government has shown its willingness to maintain the Continuity of the PCU with Uncertainty about PCU, making available counterparts funds to keep key staff qualified staff agreed during the continuity of positions for a period of time. In addition, retroactive Negotiations. the current financing has been considered on this respect. capacity to be in Retroactive financing has been charge of the new considered under the Loan project Agreement. implementation.
Project Level M The PCU (which is located in the Judiciary) will be the sole Subsidiary Agreement signed The Project could responsible implementing entity for fiduciary aspects of the by the 5 Participating face coordination Project. However, as it will receive financial support from 5 Institutions and the MEF. difficulties based separate entities, a Subsidiary Agreement will be signed by on the the 5 Participating Institutions and the MEF, and will include Effectiveness Condition (Y) participation of the responsibilities of each and establish the framework for the five coordination of the implementation of the Project. Operational Manual (FM participating section) was reviewed and entities. approved by the Bank during appraisal.
Overall Inherent M Risk
48 Control risk Budgeting, M The upfront transfer of counterpart funds from the 5 Subsidiary Agreement signed Accounting, Participating Institutions directly to the PCU will be reflected by the MEF and the 5 Coordinating the in the Subsidiary Agreement, signed between the Participating Institutions. counterpart Participating Institutions and the MEF. budgets of 5 Effectiveness Condition (Y) Participating Institutions could pose difficulties for the timely Process to reflect budget transfer of counterpart funds Operational Manual (FM availability of explained in the Operational Manual and approved by all 5 section) was reviewed and funds. Participating Institutions. approved by the Bank during Appraisal.
Internal Control L Internal control process and procedures are adequate to support project implementation.
Funds Flow M Subsidiary Agreement to be entered into between Ministry of Subsidiary Agreement signed Economy and Finance (MEF) and 5 Participating Institutions by the 5 Participating While funds flow aims to ensure a timely provision of counterpart funding. Institutions and the MEF. for the project does not envision Effectiveness Condition (Y) a complex arrangement, the availability and timeliness of counterpart funding to be provided by Participating Institutions to the PCU for execution could delay project activities.
Financial M Reconciliation process or reports with information from Operational Manual (FM Reporting SIAF is established in the Operational Manual for the section) was reviewed and The PCU utilized preparation of the IFRs, SOEs and annual reports. approved by the Bank during the SIAF-MEP appraisal system which is considered an Design of interim unaudited financial statements and annual Formats of Financial adequate financial statements to be submitted in a semester basis and Statements and IFRs were information annual basis respectively. submitted and approved by the system. However, Bank during Appraisal some manual procedure is needed to produce financial reports, which could affect the integrity of valid transactions.
49 Auditing M Financial audit will be contracted for more than one Fiscal Audit ToRs agreed with the Long Contracting Year through the Supreme Audit Institution of Peru (CGR). Bank and an acceptable audit process of audit firm selected six months after firm, through The effectiveness General Comptroller Office, may cause delays on timeliness of audit reports.
Overall control M risk Overall FM Risk M
Weaknesses and Action Plan
10. The following actions are pending completion by the PCU: (i) the continuity plan for PCU staff; (ii) Subsidiary Agreement signed by the Participating Institutions and the MEF, and (iii) the request to the General Comptroller Office (CGR) of Peru the appointment of the auditors within six months after effectiveness. It is important to mention that the PCU has worked on the completion of most of the activities of the agreed action plan to meet the Bank’s minimum fiduciary requirements to manage the financial activities of the project.
Implementing Entity, Organizational Arrangements and Staffing
11. The Justice Services Improvement Project II will have the participation of five institutions, namely: the Judiciary, the Judicial Council (CNM), the Judicial Academy (AMAG), the Ministry of Justice (MINJUS), and the Attorney General’s Office (AGO). A Steering Committee, presided by the President of the Supreme Court and composed of the representatives of each participating entity, will have the responsibility to facilitate inter-institutional coordination, provide guidance to the project, approve yearly operational plans, project reports, and approve any significant change in the design of the project.
12. Following similar arrangements for the implementation of the first Justice Service Improvement project, the new project will also be implemented by the Project Coordination Unit (PCU) in the Judiciary which operates as an autonomous executing unit and reports to the General Manager of the Judiciary. The PCU will be accountable for all financial and investments activities of the project, funded by IBRD and Government resources and will be responsible for the coordination of the activities among the Participating Institutions and for the administration of procurement, disbursement, monitoring and evaluation, and financial management of project implementation. The administrative structure of the PCU has considered the following positions: the Administrator, the Accountant, the Budget Specialist, the Treasurer, the Assets Control Specialist, and the Procurement Specialist.
13. Meanwhile, the PCU will maintain key positions with qualified staff who have developed experience in managing Bank projects and it is currently composed of the Project Coordinator, the Accountant, the Monitoring and Evaluation Specialist, the Legal Specialist, and the
50 Procurement Specialist. It is very important to ensure the continuity of the PCU and current key staff for the successful preparation and implementation of the new project. In this sense, the Government of Peru has considered to request retroactive financing for the project.
Programming and budget
14. The PCU will coordinate with the participating entities the activities to be executed for the project to prepare the Annual Operating Plan (AOP) which will be the basis for the preparation of the annual budget. To this end, the PCU has established specific processes and procedures for the preparation of the AOP and budget of the project, to make sure that those activities are timely coordinated and prepared. To the extent possible and as the project financing structure is defined, the AOP should also identify the financing source of each activity. The preparation of the annual budget will be in line with general government procedures regulated by the Annual Budget Law and by the Budget Management Law–Ley de Gestión Presupuestaria del Estado- established by the Ministry of Finance through the Dirección Nacional de Presupuesto Público (DNPP) and related guidance. The PCU will coordinate with the participating entities the formulation of the annual budget which will be submitted to the (DNPP) for Loan funds and Central Government funds of the project on or before October 31, each year. Considering that the Participating Institutions will contribute with counterpart funds to the project, it has been agreed, that upon the budget funds of the project is approved by DNPP, the budget, from each participating entity, will be transferred to the PCU’s budget to centralize all resources and facilitate the funds management. This agreement and procedures will be formalized through a Subsidiary Agreement, which will be signed by the Participating Institutions and the MEF, and constitutes a Condition of Effectiveness under the Loan Agreement.
15. The PCU will use the Government Integrated Information System (SIAF) to register, control, and monitor the budget of the project, including all source of financing –BIRF and Central Government contributions- following the functional classification in terms of components, sub-components and activities of the project. The budgetary control will consist of: (i) timely preparation and approval of annual programs, budget and procurement plans, establishing a clear relation among them; (ii) proper recording of the approved budget in the financial management system; and (iii) timely recording of commitments, and payments as needed, to allow an adequate budget monitoring, and (iv) also provide accurate information on project commitments for programming purposes. Similar to the current project, and in addition to SIAF, the PCU will use the project execution module (MEP) of SIAF, so as to allow the classification on project expenditures classified by project component/subcomponent/activity, and source of financing to prepare the comparative reports and establishes variances between the budget and actual expenses. This arrangement is satisfactory to the Bank.
Accounting Policies and Procedures
16. In relation to accounting policies and procedures the PCU uses SIAF and the General Chart of Accounts established by SIAF. This chart of accounts has been complemented with a more functional classification, including project components/sub-components/activities that would be implemented through the project execution module (MEP) of SIAF. Project transactions and preparation of financial statements will follow the cash basis of accounting.
51 17. The PCU has adequate segregation of functions and internal procedures for approving services delivered and processing payments of expenses. The main FM regulatory framework for the Project will consist of: (i) Peru’s laws governing budget and financial management; and (ii) each Participating Institution’s operating manuals and norms. Project-specific FM arrangements that are not contemplated in the documents cited above will be documented in a concise FM section of the Project’s Operational Manual. Among others, specific reference will be made to: (i) the internal controls appropriate for the Project; (ii) the formats of project financial reports; and (iii) auditing arrangements.
Information System
18. Similar to the 1st project, the PCU will continue using the same information tools and procedures to record project transactions and further preparation of financial information. The Integrated Financial Information System (SIAF) offers specific controls in terms of budget execution and the project will benefit from the use of SIAF to monitor the financial activities of the Project (especially budget and budget execution). In addition to SIAF, the PCU will continue using the project execution module (MEP) of SIAF to ensure that financial information can be monitored according to the project components. To this end, SIAF information is downloaded into MEP on a periodical basis for identification of the activities according to the functional classification of the Project so as to be able to control the project execution. However, the SIAF- MEP has been facing some technical difficulties to automatically produce the respective financial statements and prepare the withdrawal application of funds (SOES). Therefore, spreadsheets are used to complete the preparation of the financial statements and SOEs. This manual process could pose some risk to the integrity of the reports. To mitigate this risk, a reconciliation process has been established between the reports and SIAF accounts to ensure the accuracy of the financial information. The chart of accounts prepared for the Project will be incorporated into SIAF and MEP upon signature of the Loan. The use of SIAF, the SIAF-MEP, and the procedures mentioned above are satisfactory to the Bank.
Procedures and Internal Controls
19. Currently the PCU has an Operational Manual, that reflects processes, procedures, and internal control mechanisms that have proved to be adequate for the implementation of the current project. This Operational Manual has been updated to reflect the arrangement for the new Project with detailed flow charts (flujogramas) that describe the procedures, roles and responsibilities, and specific internal controls –ex-ante and ex-post- periodic reconciliation, to be followed for the implementation of each component, providing for an adequate segregation of duties, especially related to disbursement mechanisms. In addition, the Operational Manual also reflects the institutional arrangements of the new Project, specifically related to the incorporation of the AGO and the mechanism for budget formulation and transfer of budget funds from the Participating Institutions to the PCU.
52 Financial Reports
20. Every 6 months, the PCU will prepare unaudited interim financial reports (IFR) containing at least: (i) a statement of sources and uses of funds and cash balances (with expenditures classified by subcomponent and categories); (ii) a statement of budget execution per subcomponent and categories and all sources of financing and including variances between budget and actual expenses with the respective explanatory notes of main variances. The core content of the unaudited interim reports has been agreed with the Bank to ensure that such content adequately reflects Project operations, in accordance with the nature of the transaction. Those agreed formats have been included in the Operational Manual. The PCU will be responsible for submitting the interim reports to the Bank not later than 45 days after the end of each semester.
21. On an annual basis, the PCU will prepare the project financial statements including cumulative figures, for the year and as of the end of that year, of the financial statements cited in the previous paragraph. The financial statements will also include explanatory notes in accordance with the Cash Basis International Public Sector Accounting Standard (IPSAS), and the entity’s assertion that loan funds were used in accordance with the intended purposes as specified in the Loan Agreement. These financial statements, once audited, will be submitted to The World Bank not later than six months after the end of the Government’s fiscal year (which equals the calendar year).
22. As described above, IFRs will be prepared using the information provided by MEP-SIAF (budget execution by project component/activity vs. approved POA). Any working paper generated for the preparation of IFRs and annual financial statements will be maintained by the PCU as supporting documents.
Internal Audit
23. The PCU does not have an internal audit department. However, the Internal Audit Office (OCI) of the Judiciary, which reports to the General Controller’s Office of Peru (CGR), may include reviews to the PCU, in the course of its regular internal audit activities in their annual work plans. If such audits occur, the implementing entity will provide the Bank with copies of internal audit reports covering project activities and financial transactions.
Auditing arrangements
External Audit
24. The PCU will prepare the annual project financial statements, which will be audited following International Standards on Auditing (ISA), by an independent firm and in accordance with terms of reference (TORs), both acceptable to the Bank. The audit opinion covering project financial statements will contain a reference to the eligibility of expenditures. An audit firm will be hired by the PCU with the intervention of the General Controller’s Office of Peru (CGR) which will perform the audit of the Project and provide the audit report. The audit report will be required to include a section on the state of the internal control of the implementing entity. The
53 PCU will submit the audit report to the Bank no later than 6 months after the end of each fiscal year.
25. The audit work described above can be financed with loan proceeds and the PCU will request the contracting of the first external audit within six months after Loan Effectiveness. The first audit engagement is expected to cover at least eighteen months of the Project.
Table: Audit Reports’ Schedule
Audit Report Due Date 1) Project specific financial statements June 30 2) Special opinions : June 30 Statement of expenditures (SOEs) Designated Account (DA)
Flow of funds and Disbursement Arrangements
26. The PCU will be the sole responsible entity for managing loan proceeds. All other financial arrangements are similar to those of the 1st project, and have proved to be satisfactory to the Bank, and in which the PCU’s staff has developed adequate experience.
WB Disbursement Methods
27. Considering the results of the assessment, the following disbursement methods may be used to withdraw funds from the loan: (a) reimbursement, (b) advance, and (c) direct payment.
28. Under the advance method and to facilitate Project implementation, the PCU will have access to a segregated Designated Account (DA) in US dollars which will be opened and maintained in the Banco de la Nación del Peru in the name of the Project. The account would be managed by the PCU. Therefore, it will have direct access to funds advanced by the Bank to this DA.
29. Disbursement arrangements are summarized as follows:
Retroactive expenditures Eligible payments: Are incurred from April 2010 up to date of loan singing (not to exceed one year before that date). Do not exceed US$500,000; and For items procured in accordance with applicable Bank procurement procedures. Reimbursement of eligible Reimbursement of eligible expenditures into a bank account controlled by expenditures pre-financed by PCU-Justice. The minimum application size for reimbursement requests PCU-Justice project after the would be US$500,000. date of loan signing
54 Other Disbursement Direct payments to suppliers. The minimum application size for direct Methods payment requests would be US$ 500,000. Advance to a segregated designated account opened at the Banco de la Nación in US$ managed by PCU-Justice, with a ceiling of US$ 500,000 during the first six months after effectiveness of the project and thereafter it will be increased to US$1,000,000.
Supporting documentation Records (supplier contracts, invoices and receipts) for payments for under advances and consultants services against contracts valued at US$ 150,000 or more for reimbursement methods firms; US$ 50,000 for individuals; for payments for goods against contract valued at US$ 150,000 or more; for payments for civil works against contracts valued at US$ 350,000 or more. Statement of Expenditures (SOE).
Payment mechanisms
30. Funds deposited into the DA as advances, would follow Bank’s disbursement policies and procedures, as described in the Disbursement Letter and Disbursement Guidelines. To process payments, the entity will be able to withdraw the required amount to a local currency bank account from where payments to consultants and suppliers would be made. The thresholds detail to document Statement of Expenditures will be specified in the Disbursement Letter. All supporting documentation will be maintained for post-review and audit purposes for up to three years after the closing date of the project or for 18 months after receipt by the Bank of an acceptable financial audit, whichever is later.
Disbursement Deadline Date
31. Four months after the closing date specified in the Loan Agreement.
Counterpart Contributions
32. It has been agreed that the Ministry of Economy and Finance (MEF) will sign a Subsidiary Agreement with the 5 Participating Institutions, which will include reference to the commitment to ensure transfer of counterpart budgets to the Judiciary (where the sole PCU is located) at the beginning of each fiscal year of the Borrower. Following local procedures, those funds will become available for the PCU as part of the central government’s contribution (recursos ordinarios).
55 33. Loan proceeds would be disbursed against the following expenditures categories:
Table of Loan Proceeds
Financing Categories Loan Financing Percentage
1 Minor Works 3,472,500 100% 2 Goods 5,970,000 100% 3 Consultants’ Services 6,979,500 100% 4 Training 2,135,000 100% 5 Operating Costs 1,246,000 100% 6 Unallocated 197,000 Total 20,000,000
WB FM Supervision Plan
34. The initial supervision planning is presented in the table below. The FM supervision scope would be adjusted by the assigned FMS according to fiduciary performance and updated risk.
Financial Management Supervision Plan
Type Timing Mechanism Objective On-site Once a year Integrating i Review implantation of mitigating measures Visit supervision i Review control framework missions. i Review Designated Account reconciliation i Update assigned risk. i Follow up on External Audit findings. i Review IFRs information consistency. i Transactions review as needed Financial Audit Once a Over the i Raise issues disclosed in Audit Report Review year Audit Report received.
56 Annex 8: Procurement Arrangements PERU: Justice Services Improvement Project II
A. General
Procurement for the proposed project would be carried out in accordance with the World Bank’s "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004 revised October 2006 and May 2010; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 revised October 2006 and May 2010, and the provisions stipulated in the Loan Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
1. Procurement of Works: No major Civil Works are expected as part of the Project. Small Works procured under this project would include: refurbishment of existing courtrooms, offices and others physical spaces. To the extent possible, contracts for these Civil Works will be grouped in bidding packages. Contracts with estimated values of more than US$ 3,000,000 equivalent will be procured following ICB procedures. Contracts with estimated values below US$ 3,000,000 equivalent per contract may be procured using NCB procedures. Contracts which cannot be grouped into larger bidding packages and estimated to cost less than US$250,000 per contract may be procured using Shopping procedures. The procurement will be done using Bank’s SBD and a model of request for quotations satisfactory to the Bank included in the Operational Manual.
2. Procurement of Goods: Goods procured under this project would include hardware and software, peripheral equipments, IT systems, one elevator, medical and laboratory equipment, register and biometric control equipment, books, furniture, specialized testing equipment, and videoconference and communications equipments. To the extent possible, contracts for these goods will be grouped in bidding packages of more than US$250,000 equivalent and procured following ICB procedures. Contracts with estimated values below this threshold per contract may be procured using NCB procedures. Contracts for goods which cannot be grouped into larger bidding packages and estimated to cost less than US$50,000 per contract may be procured using Shopping (national/international) procedures. The procurement will be done using Bank’s SBD for all ICB and National SBD and a model of request of quotations agreed with (or satisfactory to) the Bank in the Operational Manual.
3. Procurement of non-consulting services: Non-consulting services procured under this project would include printing and publication services, production and dissemination of educational materials, data collection, surveys and inventories. The procurement will be done
57 using Bank’s SBD for all ICB and National SBD and a model of request of quotations agreed with (or satisfactory to) the Bank in the Operational Manual.
4. Selection of Consultants: Consultants services under this project would include: Design and/or implementation of: information systems, communication strategies, training programs, compilations of legal material and monitoring and evaluation systems; planning, management, assessments, training and audit services; software and websites development and other technical assistance. Short lists of consultants for services estimated to cost less than US$ 350,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. Where firms are not required, individual consultants will be hired according to Section V of the Guidelines.
5. Training: The project will finance all costs associated with training, workshops and national and international study tours required for the implementation of the project.
6. Operating Costs: Operational costs under this Project will include the incremental expenses incurred on account of Project implementation, including office equipment, communication costs, office administration costs, travel, per diem and supervision costs of locally contracted employees.
B. Assessment of the agency’s capacity to implement procurement
7. Following the implementation arrangements, the Project Coordination Unit (PCU) located in the Judiciary which will be responsible for the administration of the Project, including procurement, disbursement and financial management matters of this operation.
8. An assessment of the implementation agency’s capacity to implement procurement actions for the project was finished on December 2009. The capacity assessment report is part of the project files. The assessment looked into PCU: (a) organizational structure, (b) facilities and support capacity, (c) qualifications and experience of the staff that will work in procurement, (d) record-keeping and filing systems, (e) procurement planning and monitoring/control systems used, and (f) capacity to meet the Bank’s procurement contract reporting requirements. It also reviewed the procurement arrangements proposed in the Procurement Plan.
9. The overall project risk for procurement is Moderate. The level of risk for this project will be reassessed during implementation and revised if necessary once there is evidence of mitigating measures such as (i) the adequate implementation of the Operational Manual; (ii) the development of Bidding Documents for project implementation, and (iii) procurement reviews conducted by independent auditors and/or Bank staff.
C. Procurement Plan
10. The Borrower, at appraisal, developed a procurement plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team during Negotiations and will be available at the Procurement Plans Execution System (SEPA), and the project’s database. The Procurement Plan will be
58 updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
D. Frequency of Procurement Supervision
11. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended annual supervision missions to visit the field to carry out post review of procurement actions. The Bank will assist the Borrower in the start-up activities by providing training to key staff in procurement under Bank procedures.
E. Thresholds for Procurement Methods and Prior Review
12. Thresholds recommended for the use of the procurement methods specified in the project procurement plan are identified in the table below, which also establishes thresholds for prior review.
Thresholds for procurement methods and prior review (thousands of USD)
Contract Value Contracts Expenditure (Thresholds) US $ Subject to Prior Category thousands Procurement Method Review 1. Works >3.000 ICB All 250 – 3,000 NCB First <250 3 Quotes First Regardless of value DC All 2. Goods >250 ICB >350 50 - 250 NCB First <50 Shopping First Regardless of value DC All 3. Consulting Services >200; <200 Terms of 3.a Firms >100 QCBS, QBS, FBS, LCS Reference Terms of <100 QCBS, QBS, FBS, LCS, CQS Reference Regardless of value SSS All >100; 3.b Comparison of 3 CVs in accordance with <100 Terms of Individuals Chapter V of the Guidelines Reference
59 ICB = International Competitive Bidding NCB = National Competitive Bidding DC = Direct Contracting QCBS = Quality- and Cost-Based Selection QBS = Quality-Based Selection Note: FBS = Fixed Budget Selection LCS = Least-Cost Selection CQS = Selection Based on Consultants' Qualifications SSS: Single Source Selection
F. Details of the Procurement Arrangements Involving International Competition
1. Goods, Works, and Non Consulting Services
(a) List of contract packages to be procured following ICB and direct contracting:
1 2 3 4 5 6 7 8 9 Ref. Contract (Description) Estimated Procurement P- Domestic Review Expected Comments No. Cost (000) Method Q Preference By Bank Bid- USD (yes/no) (yes/no) Opening Date Adquisición de equipamiento informático (hardware y LPI software) para 01- $2,092,000 No Yes fortalecimiento de Q2 -2011 2011 instituciones involucradas (AMAG, CNM, PJ, MINJUS, MP) ICB Dotación de LPN equipamiento(hardware 03- $250,000 No No Q2 -2011 y software) a juzgados 2011 de paz urbanos (4 DJ) ICB LPI Implementación del 01- laboratorio en materia $1,046,350 No Yes Q1 -2012 2012 ambiental del IML ICB Adquisición de equipamiento LPI informático para 02- $1,012,000 No Yes Q1 -2012 atención de las 2012 instituciones involucradas ICB
60 Adquisición de LPI licencias(software) para 03- el Mejoramiento del $453,000 No Yes Q1 -2012 2012 Sistema de Información para la Gestión del MP ICB Adquisición de hardware y software para implementación de LPI estrategia de 04- administración de $807,450 No Yes Q1 -2012 2012 procesos de arquitectura abierta de servicios (SOA)-Negocio (BPM) en el Poder Judicial ICB Adquisición de LPI equipamiento para 01- mejoramiento del $302,000 No No Q3- 2013 2013 Sistema de Información para la Gestión del MP ICB
(b) ICB Goods contracts estimated to cost above US$ 0.350 Million per contract and all direct contracting will be subject to prior review by the Bank.
2. Consulting Services
(a) List of consulting assignments with short-list of international firms.
1 2 3 4 5 6 7 Expected Estimated Review by Proposals Cost (000) Selection Bank Submission Ref. No. Description of Assignment USD Method (Prior/Post) Date Comments Desarrollo de Sistemas de Información de apoyo fiscal y SBCC del IML y sistemas de $410,000 QCBS Yes Q2 -2011 01-2011 notificaciones electrónicas del MP Capacitación a Magistrados y personal jurisdiccional en SBCC temas jurídicos de las $397,500 QCBS Yes Q2 -2011 03-2011 especialidades laboral, comercial, familia y derecho ambiental Implementación y SBCC capacitación sobre el nuevo $480,000 QCBS Yes Q2 -2011 06-2011 régimen de estudios
61 Programa de capacitación a los Defensores de Oficio, SBCC consultores jurídicos y $700,980 QCBS Yes Q1 -2012 11-2012 personal de MARCs (nivel nacional) Acciones de capacitación conjunta a los jueces y SBCC fiscales en el NCPP. $1,250,000 QCBS Yes Q1 -2013 03-2013 (Incluye capacitación en criminalística para jueces) Diseño e implementación SBCC piloto de la oralidad en los $510,000 QCBS Yes Q1 -2013 08-2013 procesos laborales Programa de capacitación a los Defensores de Oficio, SBCC consultores jurídicos y $467,320 QCBS Yes Q1 -2013 25-2013 personal de MARCs. (nivel nacional) Capacitación a Magistrados, SBCC personal jurisdiccional y $383,750 QCBS Yes Q1 -2013 27-2013 administrativo en temas de calidad del servicio (gestión)
(b) Consultancy services estimated to cost above US$ 200,000 per contract and single source selection of consultants (firms) will be subject to prior review by the Bank.
(c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$ 350,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
62 Annex 9: Economic and Financial Analysis PERU: Justice Services Improvement Project II
1. Improved delivery of justice services may generate significant economic and financial benefits. Firstly, the “Improved Justice Services Delivery” component aims to facilitate an improved investment climate for the resolution of private sector disputes. It also fosters local business activity and attracts foreign investors who may otherwise be deterred by a poorly performing judicial system, particularly in criminal justice and protection of private property.
2. The Project is expected to have an impact in terms of improving the effectiveness of resource administration by the Judiciary. The Project will provide judicial districts with the necessary strategic planning tools to enable them to establish priorities as required given their varying needs. This will in turn contribute to overall Judiciary’s budget preparation based on user demands and institutional capacity at the local level. The Project provides a means to better budget preparation, execution and evaluation, and thus potentially better use of inputs.
3. In the area of human resources management, efficiency gains are expected from personnel reallocation and attrition at the administrative and auxiliary levels, organizational restructuring at the level of judicial districts to eliminate duplications in functions and responsibilities. 4. Other expected benefits from the Project include savings in the cost of using justice services such as ALEGRAs for users and also savings in the operating costs of some of the services provided by the Ministry of Justice through the ALEGRAs. An increase in access to justice services for the poor is expected. Current estimates are that, as a result of project interventions, there will be an increase of approximately 50% in the number of cases handled by the ALEGRAs and a 100% increase in the number of instances when Alternative Dispute Resolution (ADR) mechanisms are used in the ALEGRAs. 5. The benefits outlined above should all contribute to a better perception by citizens of justice services and a decrease in transaction costs for economic agents and users of the justice system in general.
63 Annex 10: Safeguard Policy Issues Peru Justice Services Improvement Project II
1. The objective of the proposed Project is to improve the quality of service delivery by the Participating Institutions and enhance access to justice with a focus on citizens’ needs for justice services. As such, some activities under the Project include the financing of minor works, including rehabilitation, enlargement, adaptation and modernization of some of the offices and centers of operation of the Participating Institutions included in the Project.
2. Based on the activities that will be carried out, this Project is rated as a category “C” for environmental risk purposes. The Project’s activities will only include minor works in existing infrastructure and no new construction is being financed. In order to avoid the potential adverse environmental impacts of minor works planned under the Project, Safeguard Policy OP/BP 4.01 has been triggered by the Task Team to require contractors to observe environmental standards when such minor works are conducted.
3. The proposed minor works will benefit the following Participating Institutions, among others: (i) Attorney General’s Offices, Courts and common areas in the Judicial District of Lima to provide adequate infrastructure and equipment for the implementation of the CPC; (ii) rehabilitation of the offices of the CNM and conferencing facilities in AMAG’s offices; and (iii) rehabilitation and adaptation of the ALEGRAs.
4. The existing facilities of the institutions involved in the Project may require the following types of minor works: (i) rehabilitation of facilities (for an existing infrastructure that has deteriorated walls, floors and roofs, or old facilities that require minor repairs); (ii) enlarging facilities (may entail removing walls, windows or doors to enlarge office space or to build an office in the existing infrastructure); (iii) adaptation of facilities (to provide justice services in a more adequate environment for users); (iv) modernization of services (facilities that require the installation of communications networks, computer equipment, access and connection to Internet and telephone, etc).
5. The following provides a summary of the requirements that contractors will have to observe related to environmental standards when such minor works are conducted. These requirements are referenced in the existing Operational Manual of the Project, which was endorsed by the 5 Participating Institutions in June 2010.
6. When hiring contractors to carry out minor works, terms of reference, bidding documents and contracts will include specific requirements/guidelines to be followed in order to avoid any potential adverse environmental impact. The implementation of planned minor works will be carried out according to World Bank environmental safeguards.
7. Requirements/guidelines to be observed by contractors for the implementation of minor works under the proposed project include the following:
64 a. Minor work for the conditioning, rehabilitation, expansion and modernization of the infrastructure of the Participating Institutions will be implemented with a guide19 for the treatment of the materials used, demolitions and all direct and indirect effects of the minor works to avoid affecting the environment. b. Safety issues: (i) consider 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. c. Solid waste: (i) specify the location where dirt will be disposed of, as regulated by municipal environmental guidelines and environmental law; (ii) specify the treatment of oils and liquids used by machinery and others; (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 creation 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; and (vii) with water, control and mitigate the effects of the dust produced by the works. d. Work hours and noise in the area: design an adequate work schedule, ensure noise control with regard to the neighbors; implement tools to control the noise produced by the minor works. e. Municipal permits: the contractors must make the necessary arrangements to obtain permits as needed and comply with environmental norms as required by the relevant municipality. f. Minor works in old houses and/or mansions classified as Cultural Heritage: for works in properties with these features, contractors will also follow the relevant protocols of the National Institute of Culture and obtain the relevant permits to carry out minor works as necessary.
19Environmental guides for rehabilitation and maintenance of civil infrastructure, that regulates the treatment for dust, garbage, machines, solid waste, food, safety regulations, cultural issues (National Institute of Culture) and other direct or indirect effects of the implementation of construction works. Toilet services built according to the gender of the users. 65 Annex 11: Project Preparation and Supervision PERU: Justice Services Improvement Project II
Planned Actual PCN review September 2008 September 29, 2008 Initial PID to PIC October 2008 October 7, 2008 Initial ISDS to PIC October 2008 October 15, 2008 PAD decision review January 25, 2010 January 19, 2010 Appraisal February 8, 2010 March 8, 2010 Negotiations September 24, 2010 September 24, 2010 Board/RVP approval October 2010 Planned date of effectiveness April 2011 Planned date of mid-term review April 2013 Planned closing date September 2015
Key institutions responsible for preparation of the project:
Judiciary, Ministry of Justice, Attorney General’s Office, Judicial Council, Judicial Academy and the Ministry of Economy and Finance.
Bank staff and consultants who worked on the project included:
Name Title Unit
Lisa L. Bhansali Task Team Leader and Adviser LCSOS
Nelly Ikeda Financial Management Analyst LCSFM
Francisco Rodríguez Procurement Specialist LCSPT Sr. Social Development and Civil Society Maria Elizabeth Dasso Specialist LCSSO Patricia de la Fuente Hoyes Sr. Finance Officer CTRFC
Jimena Garrote Counsel LEGLA
Sharon Spriggs Program Assistant LCSPS LCSPS Rosmary Cornejo Valdivia Governance and Public Sector Consultant
Nancy Chaarani-Meza Public Sector Consultant LCSPS
66 Bank funds expended to date on project preparation:
1. Bank resources: US$ 287,625 2. Trust funds: None 3. Total: US$ 287,625
Estimated Approval and Supervision costs:
1. Remaining costs to approval: US$ 10,000 2. Estimated annual supervision cost: US$ 95,000
67 Annex 12: Documents in the Project File PERU: Justice Services Improvement Project II
1. Ardito Vega, Wilfredo. 2004 “Justicia de paz y derecho indígena en el Perú.” At:
2. Autheman, Violaine. 2004. Global Best Practices: Judicial Integrity Standards and Consensus Principles. Keith Henderson Editor. Washington D.C.: International Foundation for Election Systems (IFES)-USAID.
3. Inter-American Development Bank. 2005. “Improving Access to the Justice System” No. 1061-OC-PE. Washington D.C.: IDB.
4. World Bank. 2005. Doing Business Report. Washington D.C.: World Bank.
5. Bhansali, Lisa and Christina Biebesheimer. 2006. “Measuring the Impact of Criminal Justice Reform in Latin America.” In: Thomas Carothers, Promoting the Rule of Law Abroad: In search of Knowledge. Washington D.C.: Carnegie Endowment for International Peace.
6. Justice Studies Center of the Americas. 2006. JSCA: Report of Justice, 2nd edition: 2004- 2005. In Spanish at:
In English at: http://www.cejamericas.org/reporte/muestra_portada.php?idioma=ingles&tipreport=REPOR TE2
7. Truth and Reconciliation Commission (Comisión de la Verdad y Reconciliación - CVR). 2003. Informe Final, “La actuación del sistema judicial durante el conflicto armado interno.” Volume III, Chapter 2: “El Poder Judicial y conclusiones.” At:
8. Consorcio Justicia Viva [“Living Justice Consortium”]. At: http://www.justiciaviva.org.pe/indicadores/>.
9. Constitution of Peru, 1993.
10. Corporación Latinobarómetro. 2005. Latinobarómetro 2005. At:
11. Elena, Sandra, Álvaro Herrero et al. 2004. Barriers to the Enforcement of Court Judgements in Peru. Wining in Courts is Only Half the Battle: Perspectives from SMEs and other Users. Washington D.C.: IFES-USAID.
68 12. Eyzaguirre, Hugo. 1997. “Marco institucional y desarrollo económico: La reforma judicial en América Latina.” In: Edmundo Jarquín and Fernando Carrillo, Editors, La economía política de la reforma judicial. New York: IDB.
13. Faundez, Julio. 2005. “Should Justice Reform Projects Take Non-State Justice Systems Seriously? Perspectives from Latin America.” Report presented at the World Bank Forum on Law, Equity, and Development (December 2005).
14. Gonzales Mantilla, Gorki et al. 2002. “El sistema de justicia en el Perú: Un enfoque analítico a partir de sus usos y usuarios.” Consultant Report for the World Bank. Lima: World Bank.
15. Hall, Gillete and Harry A. Patrinos. 2006. Indigenous Peoples, Poverty and Human Development in Latin America. New York: Palgrave McMillan Ltd.
16. Hammergren, Linn. 2004. La experiencia peruana en reforma judicial: Tres décadas de grandes cambios con pocas mejoras. En busca de una justicia distinta. Lima: Consorcio Justicia Viva publishers.
17. Hernández Breña, Wilson. 2004. “Implicancias entre la insuficiencia económica y la demanda de recursos.” Informativo Justicia Viva No. 17. Lima.
18. Hernández Breña, Wilson. 2003. Indicadores sobre administración de justicia: Mapa judicial, presupuesto y eficiencia en el desempeño judicial. Lima: Consorcio Justicia Viva (Instituto de Defensa Legal [Legal Defense Institute], Pontificia Universidad Católica del Perú [Pontific Catholic University of Peru] and Jueces para la Justicia y la Democracia [Judges for Justice and Democracy]).
19. Herrero, Álvaro and Keith Henderson. 2003. El costo de la resolución de conflictos en la pequeña empresa. El caso de Perú. Washington, D.C.: IDB.
20. Hundskopf, Oswaldo. 2005. “Un acierto: La creación de la subespecialidad comercial en el Poder Judicial.” At:
21. World Bank Institute (WBI). 2001 “Voices of the Misgoverned and Misruled: An Empirical Diagnostic Study on Governance, Rule of Law and Corruption for Peru. Analysis of Survey Feedback by Peruvian Citizens, Firms and Public Officials.” Washington D.C.: WBI.
22. Law 28237, Código Procesal Constitucional (Constitutional Procedure Code), published on May 31, 2004.
23. Law 28665, Ley de Organización, Funciones y Competencias de la Jurisdicción Especializada en Materia Penal Militar Policial (Law on the Organization, Functions, and Competencies of Specialized Jurisdiction in Criminal Military Police Matters), published on January 7, 2006.
69 24. Lovatón, David and Wilfredo Ardito. 2002. Justicia de paz: Nuevas tendencias y tareas pendientes. Lima: Instituto de Defensa Legal.
25. Lovatón, David. 2006. “Un maquillaje legislativo.” Lima: Consorcio Justicia Viva. At:
26. Lynch, Horacio et al. 1999. Justicia y desarrollo económico, cited by Álvaro Herrero and Keith Henderson, The Cost of Resolving Small-Business Conflicts. The Case of Peru. Washington, D.C.: IDB, 2003.
27. Mac Lean U., Roberto. 2004. “Reformar la justicia: ¿De qué se trata?” In: En busca de una justicia distinta. Lima. Consorcio Justicia Viva.
28. Mendoza Cánepa, Raúl. 2005. “Presupuesto e independencia judicial.” At:
29. Ministerio Público del Perú [Office of the Government Attorney of Peru]. 2005. “Informe sobre el acceso efectivo al derecho de la defensa en el Perú.” At:
30. Proética. 2006. Capítulo peruano de Transparencia Internacional. At:
31. Transparency International. 2005. At:
32. United States Agency for International Development (USAID). 2005. Impacto de la administración de justicia en la economía: Análisis y principales indicadores. Lima: USAID.
70 Annex 13: Statement of Loans and Credits PERU: Justice Services Improvement Project II
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d P104760 2011 PE-Sierra Irrigation 20.00 0.00 0.00 0.00 0.00 20.00 0.00 0.00 P116214 2011 PE 4th Prog. Fiscal Mgmt DPL 100.00 0.00 0.00 0.00 0.00 100.00 0.00 0.00 P118713 2011 PE 3rd Prog. Environmental DPL 75.00 0.00 0.00 0.00 0.00 75.00 0.00 0.00 P116929 2010 PE Safe and Sustainable Transport 150.00 0.00 0.00 0.00 0.00 150.00 0.00 0.00 P107666 2010 PE Water Resources Mgmt. 10.00 0.00 0.00 0.00 0.00 10.00 0.00 0.00 P101471 2009 PE First Prog. Environ DPL/DDO 330.00 0.00 0.00 0.00 0.00 310.00 -20.00 0.00 P101177 2009 PE-2nd Results & 330.00 0.00 0.00 0.00 0.00 310.00 -20.00 0.00 Accnt.(REACT)DPL/DDO P095563 2009 PE- (APL2) Health Reform Program 15.00 0.00 0.00 0.00 0.00 15.00 3.75 0.00 P101590 2009 PE 2nd Prg Fiscal Mgmt & Comp. 700.00 0.00 0.00 0.00 0.00 480.00 -220.00 0.00 DPL/DDO P079165 2007 PE Sierra Rural Development Project 20.00 0.00 0.00 0.00 0.00 14.40 10.96 0.00 P095570 2007 PE Decentralized Rural Transport Project 50.00 0.00 0.00 0.00 0.00 12.20 -0.30 0.00 P090116 2006 PE Rural Electrification 50.00 0.00 0.00 0.00 0.00 9.61 -4.16 0.00 P078894 2006 PE Real Property Rights II 25.00 0.00 0.00 0.00 0.00 9.67 9.67 0.00 P078813 2006 PE Regional Transport Decentralization 50.00 0.00 0.00 0.00 0.00 34.87 33.05 0.00 P082625 2005 PE Vilcanota Valley Rehab & Mgmt 4.98 0.00 0.00 0.00 0.00 2.44 2.44 0.96 Project P082588 2005 PE (APL2)Agric Research and Extension 25.00 0.00 0.00 0.00 0.00 0.48 0.48 0.00 P035740 2004 PE LIMA TRANSPORT PROJECT 45.00 0.00 0.00 0.00 0.00 1.44 1.44 0.00 P065256 2003 PE NATIONAL RURAL WATER 50.00 0.00 0.00 0.00 0.00 16.94 16.94 11.49 SUPPLY AND Total: 2,049.98 0.00 0.00 0.00 0.00 1,572.05 - 12.45 185.73
PERU STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2006 Agrokasa 15.00 0.00 0.00 0.00 11.00 0.00 0.00 0.00 1999 Alicorp 0.00 0.00 20.00 0.00 0.00 0.00 20.00 0.00 2005 Corp. Drokasa 6.41 0.00 0.00 0.00 6.41 0.00 0.00 0.00 2004 EDYFICAR 1.92 0.00 1.00 0.00 1.92 0.00 1.00 0.00 2002 FTSA 5.89 0.00 1.50 0.00 5.89 0.00 1.50 0.00 2002 Gloria 23.64 0.00 0.00 0.00 17.64 0.00 0.00 0.00 2002 ISA Peru, SA 15.28 0.00 0.00 5.59 15.28 0.00 0.00 5.59
71 2003 ISA Peru, SA 0.20 0.00 0.00 0.00 0.12 0.00 0.00 0.00 2001 Inka Terra 4.75 0.00 0.00 0.00 4.75 0.00 0.00 0.00 2004 Interbank-Peru 40.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 Interseguro 0.00 4.00 0.00 0.00 0.00 4.00 0.00 0.00 2003 Interseguro 0.00 0.59 0.00 0.00 0.00 0.59 0.00 0.00 2005 Interseguro 0.00 0.60 0.00 0.00 0.00 0.00 0.00 0.00 2000 Laredo 4.29 0.00 5.00 0.00 4.29 0.00 5.00 0.00 2004 Laredo 0.30 0.00 0.00 0.00 0.08 0.00 0.00 0.00 1998 Latino Leasing 0.83 0.00 0.00 0.00 0.83 0.00 0.00 0.00 2002 MIBANCO 0.33 0.00 0.00 0.00 0.33 0.00 0.00 0.00 2006 MIBANCO 29.08 0.00 0.00 0.00 29.08 0.00 0.00 0.00 1999 Milkito 5.50 0.00 0.00 0.00 3.50 0.00 0.00 0.00 2005 Miraflores 10.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 2003 Norvial S.A. 18.00 0.00 0.00 0.00 5.90 0.00 0.00 0.00 1998 Paramonga 10.26 0.00 0.00 8.66 10.26 0.00 0.00 8.66 2001 Peru OEH 5.50 0.00 3.00 0.00 1.50 0.00 3.00 0.00 1993 Quellaveco 0.00 4.67 0.00 0.00 0.00 4.67 0.00 0.00 1996 Quellaveco 0.00 3.98 0.00 0.00 0.00 3.98 0.00 0.00 2000 Quellaveco 0.00 0.45 0.00 0.00 0.00 0.45 0.00 0.00 2001 Quellaveco 0.00 0.57 0.00 0.00 0.00 0.54 0.00 0.00 1999 RANSA 4.38 0.00 0.00 0.00 4.38 0.00 0.00 0.00 2005 RANSA 10.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 2001 Tecnofil S.A. 3.15 2.00 0.00 0.00 3.15 2.00 0.00 0.00 2005 USMP 9.00 0.00 0.00 0.00 4.50 0.00 0.00 0.00 1993 Yanacocha 0.00 0.33 0.00 0.00 0.00 0.33 0.00 0.00 Total portfolio: 223.71 17.19 30.50 14.25 150.81 16.56 30.50 14.25
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2004 UPC II 0.00 0.00 0.00 0.00 2005 Drokasa PCG 0.00 0.00 0.00 0.00 2004 CMAC Arequipa 0.01 0.00 0.00 0.00 Total pending commitment: 0.01 0.00 0.00 0.00
72 Annex 14: Country at a Glance PERU: Justice Services Improvement Project II
Peru at a glance 12/9/09
Latin Upper- POVERTY and SOCIAL America middle- Development diamond* P eru & Carib. income 2008 Population, mid-year (millions) 28.8 565 949 Life expectancy GNI per capita (Atlas method, US$) 3,990 6,781 7,878 GNI (Atlas method, US$ billions) 115.1 3,833 7,472
Average annual growth, 2002-08 Population (%) 1. 2 1. 2 0 . 8 Labor force (%) 2.6 2.2 1.7 GNI Gross per primary M ost recent estimate (latest year available, 2002-08) capita enrollment Poverty (% of population below national poverty line) 53 .. .. Urban population (% of total population) 71 79 75 Life expectancy at birth (years) 73 73 71 Infant mo rtality (per 1,000 live births) 22 22 21 Child malnutrition (% of children under 5) 55.. Access to improved water source Access to an improved water source (% of population) 84 91 94 Literacy (% of population age 15+) 90 91 94 Gross primary enrollment (% of school-age population) 113 117 110 Peru M ale 113 119 112 Upper-middle-income group F e m a l e 112 115 10 8
KEY ECONOM IC RATIOS and LONG-TERM TRENDS 1988 1998 2007 2008 Economic ratios* GDP (US$ billions) 12.4 56.8 107.5 129.1 Gross capital formation/GDP 33.6 23.6 22.9 26.3 Exports of goods and services/GDP 18.8 13.1 28.8 27.1 Trade Gross domestic savings/GDP 29.8 18.2 29.4 26.9 Gross national savings/GDP 20.0 17.9 23.7 22.6
Current account balance/GDP -14.8 -5.9 1.1 -3.2 Interest payments/GDP 1.8 2.4 2.0 1.3 Domestic Capital savings formation Total debt/GDP 147.3 53.7 26.9 22.1 Total debt service/exports 9.5 26.1 24.7 11.7 P resent value o f debt/GDP .. .. 33.4 21.8 Present value of debt/exports .. .. 102.5 66.8 Indebtedness 1988-98 1998-08 2007 2008 2008-12 (average annual growth) GDP 3.4 5.0 8.9 9.8 3.2 Peru GDP per capita 1.4 3.6 7.6 8.5 1.1 Upper-middle-income group Exports of goods and services 8.2 8.4 6.2 8.2 1.8
STRUCTURE of the ECONOM Y 1988 1998 2007 2008 Growth of capital and GDP (%) (% of GDP) 30 Agriculture 10.3 9.0 7.0 7.2 25 Industry 33.4 29.7 37.0 36.2 20 M anufacturing 28.8 15.7 15.9 15.9 15 10 Services 56.3 61.3 56.0 56.6 5 0 Household final consumption expenditure 59.8 71.4 61.5 64.2 03 04 05 06 07 08 General gov't final consumption expenditure 10.4 10.4 9.1 8.9 GCF GDP Imports of goods and services 22.6 18.5 22.4 26.5
1988-98 1998-08 2007 2008 Growth of exports and imports (%) (average annual growth) Agriculture 3.2 4.3 3.5 7.2 25 Industry 4.6 5.7 10.1 10.1 20 M anufacturing 3.0 5.8 11.1 9.1 15 Services 2.6 4.8 9.6 9.6 10 5 Household final consumption expenditure 2.7 4.4 8.4 8.7 0
General gov't final consumption expenditure 4.5 3.9 4.5 4.0 03 04 05 06 07 08 Gross capital formation 8.5 6.7 26.1 24.8 Exports Imports Imports of goods and services 11.7 7.3 21.3 19.9
Note: 2008 data are preliminary estimates. This table was produced from the Development Economics LDB database. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be inco mplete.
73 Peru
PRICES and GOVERNMENT FINANCE 1988 1998 2007 2008 Inflation (%) Domestic prices (% change) 8 Consumer prices .. .. 0.4 5.3 6 Implicit GDP deflator 372.5 6.3 2.2 2.3 4 Government finance 2 (% of GDP, includes current grants) 0 C u r r e n t r e v e n u e 14 , 2 16 . 8 15 . 8 18 . 1 18 . 0 03 04 05 06 07 08 Current budget balance -4,486.8 1.9 3.9 4.4 GDP deflator CPI Overall surplus/deficit -6,538.9 -1.1 1.8 2.2
TRADE 1988 1998 2007 2008 Export and import levels (US$ mill.) (US$ millions)
Total exports (fob) 2,720 5,757 27,956 33,771 40,000 Copper 619 779 7,241 .. Fishmeal 3 928 4,157 .. 30,000 M anufactures 777 2,045 6,463 7,807 Total imports (cif) 2,865 8,219 19,599 29,542 20,000 Fo o d .. 787 1,203 .. 10,000 Fuel and energy 252 582 3,623 .. Capital goods 727 2,562 5,885 8,871 0 Export price index (2000=100) .. 105 240 263 02 03 04 05 06 07 08 Import price index (2000=100) .. 95 152 185 Exports Imports Terms of trade (2000=100) . . 111 15 8 14 2
BALANCE of PAYMENTS 1988 1998 2007 2008 Current account balance to GDP (%) (US$ millions) Exports of goods and services 3,551 7,531 31,041 35,166 4 Imports of goods and services 4,029 10,650 23,942 34,005 Resource balance -478 -3,119 7,099 1,161 2 Net income -1,515 -1,204 -8,374 -8,144 0 Net current transfers ...... 02 03 04 05 06 07 08 Current account balance -1,830 -3,336 1,220 -4,180 -2
Financing items (net) 1,240 2,330 8,435 7,348 -4 Changes in net reserves 590 1,006 -9,654 -3,169
Memo: Reserves including gold (US$ millions) 1,125 9,982 27,720 37,297 Conversion rate (DEC, local/US$) 2.50E-4 2.9 3.1 2.9
EXTERNAL DEBT and RESOURCE FLOWS 1988 1998 2007 2008 Composition of 2008 debt (US$ mill.) (US$ millions) Total debt outstanding and disbursed 18,231 30,486 28,884 28,555 IBRD 1,103 2,128 2,649 2,712 IDA 0 0 0 0 A: 2,712 G: 6,147 Total debt service 348 2,174 8,651 4,924 IBRD 2 184 391 366 D: 5,227 IDA 0 0 0 0
Composition of net resource flows Official grants 119 240 366 333 Official creditors 139 64 -2,337 -110 Private creditors 27 946 2,026 -1,572 E: 4,336 Foreign direct investment (net inflows) 26 1,644 5,343 4,079 F: 10,133 Portfolio equity (net inflows) 0 -346 814 180 World Bank program Commitments 0 38 250 540 Disbursements 2 271 256 294 A - IBRD E - Bilateral Principal repayments 0 64 241 230 B - IDA D - Other multilateral F - Private C - IMF G - Short-term Net flows 2 207 15 63 Interest payments 2 120 150 136 Net transfers 0 87 -135 -73
Note: This table was produced from the Development Economics LDB database. 12/9/09
74 MAP SECTION
IBRD 33465R 80°W757575°WW707070°W 0° 0°
ECUADORECUADOR ArcadiaArcadia COLOMBIACOLOMBIA
N ap o Putumayo C o PuertoPuerto CurarayCuraray rr ie T n ig te re s
ToTo MachalaMachala A Tumbes S m a az n onas t i a IquitosIquitos
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J S n J A YurimaguasYurimaguas TamáncoTamánco M ChachapoyasChachapoyas d MoyobambaMoyobamba A A TarapotoTarapoto LAMBA- R e C SANS A N
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s MAMMARTINA RTIR T I N CajamarcaCajamarca ToTo CruzeiroCruzeiro dodo SulSul
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Titicaca Antiquipa PunoPuno REGION CAPITALS AREQUIAAREQUIPAR E Q U I P A M t ToTo Atico ArequipaArequipa n LaLa PazPaz NATIONAL CAPITAL s . DesaguaderoDesaguadero RIVERS Mollendo MAIN ROADS MoquegaMoquega TACNTTACNAA C N A RAILROADS MOQUEGUA REGION BOUNDARIES ToTo BOLIVIABOLIVIA TacnaTacna VisviriVisviri INTERNATIONAL BOUNDARIES ToTo BelénBelén 75°W To Iquique CHILECHILE NOVEMBER 2006