OFFICIAL DOCUMENTS Supplemental Letter No. 2 REPUBLIC OF AZERBAIJAN October 22, 2014 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 8407-AZ (Judicial Services and Smart Infrastructure Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph A of Section II of Schedule 2 to the Loan Agreement of even date herewith between the Republic of Azerbaijan (the Borrower) and the International Bank for Reconstruction and Development (the Bank). The Borrower hereby confirms to the Bank that the indicators set out in the attachment to this letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives Very truly yours, REPUBLIC OF AZERBAIJAN By Authorized Representative Attachment Attachment to the Supplemental Letter No. 2 (Judicial Services and Smart Infrastructure Project) Performance Monitoring Indicators Results Framework Project Development Objectives PDO Statement The objective of the project is to improve (i) access, (ii) transparency and (iii) the efficiency of delivery of selected justice services. These results are at IProject Level Project Development Objective Indicators Cumulative Target Values Responsibility Iniao Nm oe Unit of Data Source!/ o Dt Indicator Name Core Baseline 2015 2016 2017 2018 2019 End Frequency Methodology for Data Target Collection 1. Number of MOJ and beneficiaries Number 0 0 2500 10000 15000 20000 25000 Annual project MOJ provided legal reports aid 2. Number of disputes submitted to MOJ and pilot alternative Number 0 0 0 100 500 2000 5000 Annual project MOJ dispute reports resolution systems per year 3. Publication of Reports from Supreme upatd at1 nYes/No No No Yes Yes Yes Yes Yes Annual Spee Cut O updated data' on Supreme Court; MOJ This indicator measures transparency. The data referred to will include, but not be limited to: (i) for the MOJ - data on number and value of judicial decisions enforced; number of state registration requests received and processed; and number of inspections conducted - all updated twice a year; (ii) for the Supreme Court - court-level (not by individual judge) data on the number of cases received and number of cases resolved by category of cases (e.g. civil, administrative, criminal, etc.), updated each year and (iii) for the MOJ and the Supreme Court - the results of periodic surveys of users of the justice system (litigants, lawyers, notaries, etc.) to assess their satisfaction with service access, speed and quality - updated each year. 2 the respective Court, MOJ websites of the and survey Ministry of reports; Justice and the project Supreme Court reports 4. Time taken to enforce Days 237 237 235 235 225 215 200 Annual MOJ reports MOJ contracts through courts 5. Users of JSSIP-supported pilot courts expressing Percentage 0 25 35 45 55 65 75 Annual MOJ reports MOJ satisfaction with judicial serviceS2 Intermediate Results Indicators Cumulative Target Values Responsibility Unit of Data Source!/ o Dt Indicator Name Core Baseline End Frequency for Data Measure 2015 2016 2017 2018 2019 Target Collection Number of Number minority Sub-Type MOJ and beneficiaries Supplemental 0 0 500 1100 2000 3000 5000 Annual project MOJ accessing for PDO reports mobile courts Indicator 1 Number of Number MOJ and women Sub-Type 0 0 300 750 1100 1500 2000 Annual project MOJ beneficiaries Supplemental reports accessing for PDO 2 This is a key outcome indicator. It will be based on carefully designed court-specific surveys, to be administered by independent survey professionals, to measure users' satisfaction with access to, and speed and quality of, judicial services. Survey questions will not relate to specific judges or court staff. The indicator value refers to those respondents who state they are 'fully' or 'somewhat' satisfied. (Azerbaijan's Asan Xidmet or Easy Service facility inaugurated in 2013 - a one-stop shop for almost twenty public services, conducts periodic customer satisfaction surveys.) 3 mobile courts Indicator 1 Number of IDP Number MOJ and beneficiaries Sub-Type 0 0 300 750 1100 1500 2000 Annual project MOJ accessing Supplemental 00prts mobile courts for PDO Indicator 1 Number of disputes Number submitted by Sub-Type MOJ and women to pilot Supplemental 0 0 0 200 300 400 500 Annual project MOJ ditei for PDO reports esoutin Indicator 2 resolution systems per year Number of disputes Number submitted by Sub-Type MOJ and IDPs to pilot Supplemental 0 0 0 400 600 800 1000 Annual project MOJ alternative for PDO reports dispute resoltionIndicator 2 resolution systems per year Number of disputes Number submitted by Sub-Type MOJ and firms to pilot Supplemental 0 0 0 0 400 300 500 Annual project MOJ alternative for PDO reports dispute Indicator 2 resolution systems per year Number of Number disputes Sub-Type MOJ and submitted by Supplemental 0 0 0 0 200 300 500 Annual project MOJ minorities to for PDO reports pilot alternative Indicator 2 4 dispute resolution systems per year Case hearings in r- IDP and remote areas, as measured by Percentage 0 0 10 20 30 40 50 Annual Case Supreme percentage statistics Court; MOJ mecrease over the 2014 baseline Percent of all Case Supreme civil cases filed Percentage 0 0 10 20 30 35 40 Annual statistics Court; MOJ electronically Percent of all notary service Percentage 0 0 10 20 30 40 50 Annual Notary case Supreme requests filed statistics Court; MOJ electronically Administrative and compliance Amount burden of state (USD inspections as million) 0 10 15 30 55 65 82 Annual MOJ reports MOJ measured by cost savings per calendar year3 Publication of organizational Supreme performance and Yes/No No No No Yes Yes Yes Yes Annual Court & Supreme budget C ourt Court; MOJ information on MOJ and This indicator measures the efficiency of delivery of one key justice sector service (inspections) which has been burdensome for firms and individuals and has contributed to choking private sector performance and growth, and created opportunities for corruption.. 4 This information includes, but is not limited to information on (i) budget allocations and actual expenditures, by function (in the case of the MOJ - where such information is public); (ii) performance targets and achievements (e.g. for the courts, cases received and resolved; for MOJ, functional performance targets and actual achievements). The performance information is at the organizational level. No information will be disclosed on performance of individuals. 5 Supreme Court websites Justice Sector Gender Strategy MOJ and MOJ; Supreme and Action Plan Yes/No No No Yes Yes Yes Yes Yes Annual Supreme Court; Judicial adopted and Court reports Legal Council implemented Information on construction of courts is MOJ and publicly Yes/No No Yes Yes Yes Yes Yes Yes Annual project MOJ accessible and reports regularly updated 5 ' This indicator is a measure of transparency. The MOJ will undertake the construction of courts, court complexes and data/backup centers. This indicator measures whether, for each construction location, there is 24/7 live web streaming of construction and quarterly uploading of satellite pictures on the publicly accessible parts of the MOJ and Supreme Court websites. 6