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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR0000536 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46130 JPN-26113) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$ 5 MILLION TO THE REPUBLIC OF CROATIA FOR A COURT AND BANKRUPTCY ADMINISTRATION PROJECT Public Disclosure Authorized June 29, 2007 Poverty Reduction and Economic Management Department Europe and Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective May 14, 2007) Currency Unit = Croatian Kuna 1.00 = US$ 0.18 US$ 1.00 = 5.41 Kuna FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CAS - Country Assistance Strategy CPS Country Partnership Strategy CBAP - Court and Bankruptcy Administration Project (the “Project”) EU - European Union FINA - Financial Agency (formerly “ZAP”) FMS - Financial Management Specialist IBRD - International Bank for Reconstruction and Development ICMS - Integrated Court Management System ICT - Information and Communications Technology ISR - Implementation Status Results and Reports KPI - Key Performance Indicators LIL - Learning and Innovation Loan MOF - Ministry of Finance MOJ - Ministry of Justice M&E - Monitoring and Evaluation NCSC National Center for State Courts PDO - Project Development Objective PMU - Project Management Unit SFRY - Socialist Federal Republic of Yugoslavia TTL - Task Team Leader USAID - United States Agency for International Development Vice President: Shigeo Katsu Country Director: Anand Seth Sector Manager: Ronald Myers Project Team Leader: Irina Kichigina ICR Team Leader: Craig Neal CROATIA Court and Bankruptcy Administration Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes.......................................................................................... 11 4. Assessment of Risk to Development Outcome......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 14 6. Lessons Learned ....................................................................................................... 16 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 17 Annex 1. Project Costs and Financing.......................................................................... 19 Annex 2. Outputs by Component ................................................................................. 20 Annex 3. Economic and Financial Analysis................................................................. 27 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 28 Annex 5. Beneficiary Survey Results........................................................................... 30 Annex 6. Stakeholder Workshop Report and Results................................................... 34 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR..................... 35 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 53 Annex 9. List of Supporting Documents ...................................................................... 54 MAP A. Basic Information Court & Bankruptcy Country: Croatia Project Name: Administration Project (LIL) IBRD-46130,JPN- Project ID: P065466 L/C/TF Number(s): 26113 ICR Date: 06/29/2007 ICR Type: Core ICR REPUBLIC OF Lending Instrument: LIL Borrower: CROATIA Original Total USD 5.0M Disbursed Amount: USD 4.9M Commitment: Environmental Category: C Implementing Agencies: Project Management Unit Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 07/06/1999 Effectiveness: 01/29/2002 01/29/2002 Appraisal: 12/11/2000 Restructuring(s): Approval: 06/13/2001 Mid-term Review: 04/27/2004 Closing: 07/31/2005 01/31/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Law and justice 100 100 Theme Code (Primary/Secondary) Judicial and other dispute resolution mechanisms Primary Primary Law reform Primary Not Applicable Legal institutions for a market economy Primary Primary Legal services Primary Not Applicable Personal and property rights Primary Not Applicable E. Bank Staff Positions At ICR At Approval Vice President: Shigeo Katsu Johannes F. Linn Country Director: Anand K. Seth Andrew N. Vorkink Sector Manager: Ronald E. Myers Sanjay Pradhan Project Team Leader: Irina L. Kichigina Lubomira Zimanova Beardsley ICR Team Leader: Irina L. Kichigina ICR Primary Author: Craig R. Neal F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective of the Project is to assist the Government of Croatia in advancing orderly insolvency proceedings while modernizing selected commercial (and municipal) courts and increasing professionalism and competence of judges, other staff of the commercial courts, and bankruptcy trustees. Specifically, the Project aims to: ii 1) Develop a replicable model of court administration and case management; 2) Create a legal information system for commercial courts; 3) Design and implement a more effective regulatory framework for trustees and administrators; 4) Upgrade the skills of commercial court judges, trustees, and administrators. Revised Project Development Objectives (as approved by original approving authority) Not revised. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Case backlogs at commercial courts reduced by 50% Bankruptcy case inflow declined Rough estimate in PAD from nearly 30,000 Value that 90% of the 1 million Case backlog to in 2001 to 1,100 in quantitative or case backlog in Croatian decrease by 50% 2005, while case Qualitative) courts were in the resolution has risen commerical courts from 7,663 to 12,504 in 2003. Date achieved 12/31/1998 01/31/2007 12/31/2005 Comments (incl. % achievement) Professionalism and competence of the commercial court judges and bankruptcy Indicator 2 : professionals is significantly increased. Seminars and Court user survey roundtables carried out in underway, with November 2006 more systematic The public perceives both indicated that court planning for judges and bankruptcy users are relatively training being Value professionals as lacking satisfied with conceptualized. quantitative or the requisite education various aspects of To assess Qualitative) and skills to handle courts and their enhanced skills commercial matters, work, from the and competence, a especially bankruptcy. work done by user survey will be judges and court carried out to personnel assess improved themselves. perf Date achieved 06/13/2001 01/31/2007 11/24/2006 Comments (incl. % achievement) Indicator 3 : Regulatory framework for administrators and trustees completed iii Efforts in these Regulatory Value areas significantly Incomplete and framework for quantitative or underperformed conflicting legislation administrators and Qualitative) relative to trustees improved. expectations. Date achieved 06/13/2001 01/31/2007 01/31/2007 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Proposal for model court organization and case flow management as agreed with Indicator 1 : the Bank is implemented in the pilot courts. The integrated The case flow court and case The MOJ finalized management system in management the ICMS software Croatia is outdated and information and moved the pilot Value cannot effectively support system (CCMIS) implementations in (quantitative the current demands on is developed and is the Municipal Court or Qualitative) the judicial system. fully functional in Pula and the Court procedures take the four pilot Commercial Court many years to be courts (two Split into full resolved. commercial and operations. two municipal). Date achieved 06/13/2001 12/31/2006 01/31/2007 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived
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