WORLD BANK GROUP South Caucasus Regional Office Mercy Tembon Regional Director O FFICIAL DOCUMENTS October 22, 2018 Mr. Samir Sharifov Minister of Finance Ministry of Finance Republic of Azerbaijan Re: Azerbaijan: IBRD 8407-AZ (Judicial Services and Smart Infrastructure Project) Extension of Closing Date and Amendment to the Annex to Supplemental Letter No. 2: Performance Monitoring Indicators Dear Mr. Sharifov: We refer to the Loan Agreement between the Republic of Azerbaijan ("Borrower") and the International Bank of Reconstruction and Development ("Bank"), dated October 22, 2014 and the Borrower's Supplemental Letter No. 2 to the Loan Agreement dated October 22, 2014, concerning the above-referenced Project's performance monitoring indicators ("Supplemental Letter No. 2"). Reference is also made to your letter No. 08/06-44-4039, dated September 10, 2018 requesting the Bank to extend the Closing Date and to make certain amendments to the performance targets for the Project. I am pleased to inform you that the Bank concurs with your request. Consequently, the Bank has established June 30, 2020 as the later date for purposes of Section IV.B.2 of Schedule 2 to the Loan Agreement. With reference to the provisions of Section IL.A of Schedule 2 to the Loan Agreement, the Borrower hereby confirms to the Bank that the indicators set out in the attachment to this letter shall serve as the basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Yours Sincerely, CONFIRMED REPUBLIC OF AZERBAIJAN BJr2*laj Date: SI 1~.2 Title:S e 5A, Ramishvili Street 1818 H Street N.W. Tbilisi 0179, Georgia Washington, DC 20433, USA. Tel: +995 (32) 291 30 96 Tel: +1 (202) 473 7252 Fax: +995 (32) 291 34 78 Fax: +1 (202) 522 3607 "' b~C,11 Re,pb:3v .1~yU77 -2- Attachment Amendment to the Annex to Supplemental Letter No. 2 REPUBLIC OF AZERBIAJAN (Judicial Services and Smart Infrastructure Project) Performance Monitoring Indicators Project Development Objectives(s) The objective of the project is to improve the access, transparency and efficiency of delivery of selected justice services. Project Development Objective Indicators by Objectives/ Outcomes Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Improve the access, transparency and efficiency of delivery of selected justice services Users expressing satisfaction with access, transparency and efficiency 0.00 25.00 30.00 40.00 50.00 50.00 55.00 of selected justice services (Percentage) Rationale: Action: This indicator has been Revised To track progress and achievement of the project's objectives the end target and date have been revised to reflect the project's new closing date. Direct project 0.00 5,000.00 10,000.00 20,000.00 70,000.00 120,000.00 150,000.00 beneficiaries (Number) -3- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: The target set by this intermediate indicator has already been achieved. Action: This indicator has been Revised To track sustainability of the project's objectives and further uptake as more and more courts will be connected the intermediate indicator's end target and date have been revised to take into account the project's new closing date. Female beneficiaires 0.00 5.00 10.00 15.00 25.00 30.00 33.00 (Percentage) Rationale: The target set by this intermediate indicator has already been achieved. Action: This indicator has been Revised To track sustainability and further uptake the intermediate indicator's end target and date have been revised to take into account the project's new closing date. IDP and refugee beneficiaries 0.00 2.00 4.00 7.00 10.00 11.00 12.00 (Percentage) Rationale: Action: This indicator To track sustainability and further uptake the intermediate indicator's end target and date have been revised to take into account the project's new closing has been Revised date. Access: Beneficiaries utilizing legal aid services 2,200.00 3,000.00 4,000.00 6,000.00 7,000.00 9,000.00 10,000.00 (Number) Rationale: Action: This indicator has To reflect the new project's closing date and taking into account the delays in starting implementation of the legal aid pilot the indicator's target dates have been Revised been revised accordingly. Legal aid laws and procedures reviewed No No Yes Yes Yes Yes Yes and improvements adopted (Yes/No) -4- Indicator Name DLI Baseline intermediate Targets End Target 1 2 3 4 5 Rationale: Action: This Indicator To track sustainability and further progress the intermediate indicator's end target and date have been revised to take into account the project's new closing has been Revised date. Disputes submitted to pilot ADR system 0.00 0.00 0.00 200.00 400.00 400.00 400.00 (Number) Rationale: Action: This indicator As no additional resources are allocated to this activity, the intermediate indicator's end target has been revised to track sustainability and uptake while taking has been Revised into account the project's new closing date. Supreme Court E-Library information is accessed 0.00 0.00 0.00 4,000.00 10,000.00 10,000.00 10,000.00 by users (Number) Rationale: Action: This indicator To track sustainability the intermediate indicator's end target is maintained, its date has been revised to take into account the project's new closing date. has been Revised MOJ IT Call Center and Help Desk operational No No Yes Yes Yes Yes Yes (Yes/No) Rationale: Action: This indicator The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. has been Revised Smart courts 7.00 7.00 8.00 10.00 10.00 11.00 12.00 constructed (Number) -5- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: The target value was reduced from 13 to 12 smart courts constructed as GOA priorities have changed. Instead of investing further In infrastructure, the GOA's hasbion Thisd focus is on e-service delivery to increase access for citizens and businesses, transparency and efficiency. The previously planned Baku City Specialized Court has been Revised Complex will therefore not be constructed under this project. Transparency: Performance information available on Ministry of Justice and 0.00 2.00 4.00 5.00 5.00 5.00 5.00 Supreme Court websites (Number) Rationale: Action: This indicator has The target set by this intermediate indicator has been partially achieved. been Revised To track further progress and sustainability the intermediate indicator's end target and date have been revised to take into account the project's new closing date. Audio-video court proceedings transcription system No No Yes Yes Yes Yes Yes operational in JSSIP financed courts (Yes/No) Rationale: Action: This Indicator To track sustainability and further uptake as more courts will be connected the intermediate indicator's end date has been revised to take into account the has been Revised project's new closing date. Information on construction activities is pulcyacesbeNo Yes Yes Yes Yes Yes Yes publicly accessible (Yes/No) -6- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: Action: This indicator This is a continued monitoring and supervision tool, hence the intermediate Indicator's end date has been revised to take into account the project's new closing has been Revised date. Information on performance and budgets is available on No No No Yes Yes Yes Yes MOJ and Supreme Court websites (Yes/No) Rationale: Action: This indicator The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. The intermediate has been Revised indicator's end date has been revised to take into account the project's new closing date. Justice Sector Gender Strategy and Action Plan No No Yes Yes Yes Yes Yes publicly available (Yes/No) Rationale: Action: This indicator This activity is ongoing. To track progress and sustainability, the Intermediate indicator's end date has been revised to take into account the project's new has been Revised closing date. Efficiency: Time taken to enforce contracts through 237.00 237.00 230.00 225.00 215.00 212.00 210.00 courts (Days) Rationale: Action: This indicator has To track sustainability and further progress the intermediate indicator's end target and date have been revised to take into account the project's new closing been Revised date. Cost savings from reduced administrative 0.00 10.00 15.00 25.00 25.00 and compliance burden -7- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 of business inspections (Amount(USD)) Rationale: The target set by this intermediate indicator has already been achieved. Action: This indicator The end target data has been revised as its practical relevance is superseded. Law No. 1410-IVQ of October 20, 2015 and the Presidential Decree No. 660 of has been Revised October 26, 2015 have postponed the requirement to undertake business inspections: first until October 31, 2017, now extended untilfurther notice. The project cannot track the cost savings of a postponed government procedure. Average energy consumption in JSSIP- 0.70 0.00 0.00 0.50 0.30 0.30 0.30 financed 'smart courts (MWh/year) Rationale: Action: This indicator The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. The intermediate has been Revised indicator's end date has been revised to take into account the project's new closing date. Number of uncontested civil enforcement cases electronically processed 5,000.00 0.00 5,000.00 10,000.00 20,000.00 25,000.00 27,000.00 using the JSSIP-financed automated system (Number) Rationale: Action: This indicator is in order to increase the efficiency of services provided by Azerbaijan's courts, the project is focusing on e-services and testing in this context new tools to AN: decrease the workload burden on judges and speeding up processes while at the same time increasing access and transparency for court users. The project's New innovative character and push for e-services in the judiciary deserves to be reflected adequately also in its results framework. -8- Intermediate Results Indicators by Components indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 A. Judicial Service Delivery Improvements Direct project beneficiaries ( epr)t b0.00 5,000.00 10,000.00 20,000.00 70,000.00 120,000.00 150,000.00 (Number) Rationale: Action: This Indicator has The target set by this intermediate indicator has already been achieved. been Revised To track sustainability of the project's objectives and further uptake as more and more courts will be connected the intermediate Indicator's end target and date have been revised to take into account the project's new closing date. Female beneficiaries 0.00 5.00 10.00 15.00 25.00 30.00 33.00 (Percentage) Rationale: The target set by this intermediate indicator has already been achieved. Action: This indicator has been Revised To track sustainability and further uptake the intermediate indicator's end target and date have been revised to take into account the project's new closing date. IDP and refugee beneficiaries 0.00 2.00 4.00 7.00 10.00 11.00 12.00 (Percentage) Rationale: Action: This indicator To track sustainability and further uptake the Intermediate indicator's end target and date have been revised to take into account the project's new closing has been Revised date. Legal aid laws and procedures reviewed and iproemres adoed aNo No Yes Yes Yes Yes Yes improvements adopted (Yes/No) Action: This indicator has Rationale: been Revised To track sustainability and further progress the intermediate indicator's end target and date have been revised to take into account the project's new closing date. -9- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Disputes submitted to pilot 0.00 0.00 0.00 200.00 400.00 400.00 400.00 ADR systems (Number) Rationale: Action: This indicator has As no additional resources are allocated to this activity, the intermediate indicator's end target has been revised to track sustainability and uptake while taking been Revised into account the project's new closing date. B. Strengthening Institutional Capacity, Efficiency and M&E MOJ IT Call Center and Help No No Yes Yes Yes Yes Yes Desk operational (Yes/No) Rationale: Action: This indicator has Rtoae been Revised The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. Audio-video court proceedings transcription No No Yes Yes Yes Yes Yes system operational in JSSIP financed courts (Yes/No) Rationale: Action: This indicator has To track sustainability and further uptake as more courts will be connected the intermediate indicator's end date has been revised to take into account the been Revised project's new closing date. Information on performance and budgets is available on MOJ and No No No Yes Yes Yes Yes Supreme Court websites (Yes/No) Rationale: Action: This indicator has The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. The intermediate been Revised indicator's end date has been revised to take into account the project's new closing date. -10- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Justice Sector Gender Strategy and Action Plan is No No Yes Yes Yes Yes Yes publicly available (Yes/No) Rationale: Action: This indicator has This activity is ongoing. To track progress and sustainability, the intermediate indicator's end date has been revised to take into account the project's new been Revised closing date. Supreme Court E-Library information is accessed by 0.00 0.00 0.00 4,000.00 10,000.00 10,000.00 10,000.00 users (Number) Rationale: Action: This indicator has To track sustainability the intermediate indicator's end target is maintained, its date has been revised to take into account the project's new closing date. been Revised Cost savings from reduced administrative and compliance burden of 0.00 10.00 15.00 25.00 25.00 business inspections (Amount(USD)) Rationale: The target set by this intermediate indicator has already been achieved. Action: This indicator has The end target data has been revised as its practical relevance is superseded. Law No. 1410-IVQ of October 20,2015 and the Presidential Decree No. 660 of been Revised October 26,2015 have postponed the requirement to undertake business inspections: first until October 31, 2017, now extended untilfurther notice. The project cannot track the cost savings of a postponed government procedure. C. Expansion and Modernization of Justice Infrastructure Smart courts constructed 7.00 7.00 8.00 10.00 10.00 11.00 12.00 (Number) Rationale: Action: This indicator has The target value was reduced from 13 to 12 smart courts constructed as GOA priorities have changed. Instead of investing further in Infrastructure, the GOA's been Revised focus is on e-service delivery to increase access for citizens and businesses, transparency and efficiency. The previously planned Baku City Specialized Court Complex will therefore not be constructed under this project. -11- Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Information on construction activities is publicly No Yes Yes Yes Yes Yes Yes accessible (Yes/No) Rationale: Action: This indicator has This is a continued monitoring and supervision tool, hence the intermediate indicator's end date has been revised to take into account the project's new closing been Revised date. Average energy consumption in JSSIP- financed 'smart courts' - 0.70 0.00 0.00 0.50 0.30 0.30 0.30 kilowatt-hours per square meter per annum (Megawatt hour(MWh)) Rationale: Action: This indicator has The target set by this intermediate indicator has already been achieved and is kept to track sustainability of the project's objectives. The intermediate been Revised Indicator's end date has been revised to take into account the project's new closing date. -12- CC: Mr. Fikrat Mammadov, Minister of Justice Mr. Ramiz Rzayev, Chairman of the Supreme Court Mr. Shahin Mustafayev, Minister of Economy Mr. Natig Amirov, Assistant to the President for Economic Policy and Industrial Issues, Head of Department, Administration of the President of the Republic of Azerbaijan Mr. Fuad Alasgarov, Assistant to the President for Work with Law Enforcement Bodies and Military Issues, Administration of the President of the Republic of Azerbaijan Mr. Elman Rustamov, Chairman of the Central Bank of Azerbaijan and Governor to the World Bank Ms. Hijran Huseynova, Chairperson, State Committee for Family, Women and Children's Affairs Mr. Azer Jafarov, Deputy Minister of Justice and Project Director, Judicial Services and Smart Infrastructure Project Mr. Shahin Sadigov, Head of Department for Financial and Economic issues, Cabinet of Ministers Mr. Ramin Gurbanov, Judge, Baku City Yasamal District Court and Project Coordinator, Judicial Services and Smart Infrastructure Project Mr. Werner Gruber, Executive Director for Azerbaijan, The World Bank Ms. Katarzyna Zajdel-Kurowska, Alternative Executive Director for Azerbaijan, the World Bank Mr. Namig Naghdaliyev, Advisor to the Executive Director for Azerbaijan, The World Bank Mr. Naveed Hassan Naqvi, Country Manager for Azerbaijan, The World Bank