Kenya - Judicial Performance Improvement Project

 Document of The World Bank FOR OFFICIAL USE ONLY Report No: 72979 - KE INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 78.9 MILLION (US$ 120 MILLION EQUIVALENT) TO THE REPUBLIC OF KENYA FOR A JUDICIAL PERFORMANCE IMPROVEMENT PROJECT October 22, 2012 Poverty Reduction and Economic Management Unit 2 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective August 2012) Currency Unit = Kenya Shillings (K.Sh.) K.Sh. 84 = US$ 1 US$ 1 = SDR 0.65703 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS CPA Certified Public Accountant CPU Central Planning Unit CUC Court Users Committee DA Designated Account ESMF Environment and Social Management Framework ESMP Environment and Social Management Plan FLSTAP Financial & Legal Sector Technical Assistance Project FM Financial Management FY Financial Year GAC Governance and Anti-Corruption GoK Government of Kenya GIZ German Gesellschaft für Internationale Zusammenarbeit/German Society for International Cooperation HQ Headquarters ICB International Competitive Bidding ICT Information and Communications Technology IDA International Development Association IDLO International Development Law Organization IFA Integrated Fiduciary Agent IFMIS Integrated Financial Management Information System IFR Interim Financial Reports IJIP Integrated Justice Information Portal IPMAS Integrated Performance Management and Accountability System IT Information Technology JPIP Judicial Performance Improvement Project JSC Judicial Service Commission JTI Judiciary Training Institute JTF Judiciary Transformation Framework KENAO Kenya National Audit Office KSH Kenya Shilling KRA Key Result Area M&E Monitoring and Evaluation MoF Ministry of Finance NCAJ National Council on the Administration of Justice NCB National Competitive Bidding NCLR National Council on Law Reporting NGO Non-Governmental Organization ORAF Operational Risk Assessment Framework PDO Project Development Objective PMU Project Management Unit PPDA Public Procurement and Disposal Act of 2005 PPA Project Preparation Advance PPOA Public Procurement and Oversight Authority RAP Resettlement Action Plan RPF Resettlement Policy Framework SBD Standard Bidding Documents SIL Specific Investment Loan SOE Statement of Expenditure TA Technical Assistance TOR Terms of Reference UNODC United Nations Office on Drugs and Crime USD/US$ United States Dollar WB World Bank Regional Vice President: Makhtar Diop Country Director: Johannes Zutt Sector Director: Marcelo Giugale Sector Manager: J. Humberto Lopez Task Team Leader: Nightingale Rukuba-Ngaiza Co-Task Team Leader: George Larbi  KENYA JUDICIAL PERFORMANCE IMPROVEMENT PROJECT Table of Contents I. Strategic Context ................................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 8 II. PROJECT DEVELOPMENT OBJECTIVE .......................................................................10 A. PDO.............................................................................................................................. 10 III. PROJECT DESCRIPTION .................................................................................................10 A. Project Components ..................................................................................................... 10 B. Project Financing.......................................................................................................... 13 C. Lending Instrument ...................................................................................................... 13 D. Lessons Learned and Reflected in the Project Design ................................................ 14 IV. IMPLEMENTATION ...........................................................................................................16 A. Institutional and Implementation Arrangements ........................................................ 16 B. Results Monitoring and Evaluation ............................................................................ 17 C. Sustainability............................................................................................................... 18 V. KEY RISKS AND MITIGATION MEASURES .................................................................18 A. Risk Ratings Summary Table ..................................................................................... 18 B. Overall Risk Rating Explanation ................................................................................ 19 VI. APPRAISAL SUMMARY ....................................................................................................19 A. Economic and Financial Analyses .............................................................................. 19 B. Technical ..................................................................................................................... 20 C. Financial Management ................................................................................................ 20 D. Procurement ................................................................................................................ 20 E. Social (including Safeguards) ..................................................................................... 21 F. Environment (including Safeguards) .......................................................................... 21 Annex 1: Results Framework and Monitoring .........................................................................23 Annex 2: Detailed Project Description .......................................................................................27 Annex 3: Implementation Arrangements ..................................................................................40 Annex 4: Operational Risk Assessment Framework (ORAF) .................................................58 Annex 5: Implementation Support Plan ....................................................................................62 Annex 6: Objectives for Construction and Renovation ...........................................................65 Annex 7: Economic and Financial Analyses..............................................................................70 Annex 8: Governance and Anti-Corruption Action Plan ........................................................72  PROJECT APPRAISAL DOCUMENT (PAD) DATA SHEET Kenya Judicial Performance Improvement Project (JPIP) (P105269) AFTP2 . Basic Information Date: October 22, 2012 Sectors: Law and justice (70%), General public administration sector (10%); and Information and communication technology (20%) Country Director: Johannes C. M. Zutt Themes: Judicial and other dispute resolution mechanisms (67%), Other accountability/anti-corruption Sector Manager/Director: J. Humberto Lopez / Marcelo Giugale (33%) Project ID: P105269 EA B - Partial Assessment Category: Lending Instrument: Specific Investment Loan Team Leaders: Nightingale Rukuba-Ngaiza & George Larbi Joint IFC: No . Borrower: Republic of Kenya Ministry of Finance The Treasury P. O. Box 30007-00100 Nairobi, Kenya Tel: (+254-20) 2252299 Fax: (+254-20) 2240045 Responsible Agency: Judiciary of the Republic of Kenya Contact: Ms. Gladys Shollei Title: Chief Registrar Telephone No.: (+254-20) 2221221 Email: chiefregistrar@Judiciary.go.ke . Project Implementation Period: Start Date: November 15, 2012 End Date: December 31, 2018 Expected Effectiveness Date: December 31, 2012 Expected Closing Date: December 31, 2018 . Project Financing Data(US$M) [ ] Loan [ ] Grant [ ] Term: Standard IDA terms, with a maturity of 40 years, including a [X] Credit [ ] Guarantee grace period of 10 years. For Loans/Credits/Others Total Project Cost (US$M): 120.0 Total Bank Financing (US$M): 120.0 . i Financing Source Amount (US$M) BORROWER/RECIPIENT International Development Association (IDA) 120.0 Financing Gap 0 Total 120.0 . Expected Disbursements (in USD Million) Fiscal Year 2013 2014 2015 2016 2017 2018 2019 Annual 5 20 30 35 20 8 2 Cumulative 5 25 55 90 110 118 120 . Project Development Objective To improve the performance of the Judiciary to provide its services in the project areas in a more effective and accountable manner. . Components Component 1: Implementing a program of activities for strengthening the Judiciary’s court administration and case management systems and processes, with a view to improving performance, accountability, access to justice and the expeditious delivery of judicial services. Component 2: Strengthening the capacity of the Judiciary Training Institute, through the provision of technical and advisory services, training, goods and selected operating costs, and supporting the capacity building activities of the office of Attorney-General for its legal personnel. Component 3: Constructing approximately 8 High Court buildings and 2 magistrate courts in priority areas, rehabilitating approximately 30 magistrate courts, supplying approximately 20 temporary or demountable courts, and establishing a unit for the supervision, maintenance and management of Judiciary’s buildings. Component 4: Establishing and strengthening the capacity of the Project Management Unit, providing technical advisory services for procurement and financial management under the project, implementing environmental and social safeguard requirements, and carrying out monitoring and evaluation and related studies. Component Name Cost (USD Millions) 1. Court Administration and Case Management 42.8 2. Judiciary Training and Staff Development 17.0 3. Court Infrastructure 50.0 4. Project Management 10.2 Compliance Policy Yes No Does the project depart from the CAS in content or in other significant respects? X Does the project require any waivers of Bank policies? X Have these been approved by Bank management? N/A Is approval for any policy waiver sought from the Board? X Does the project meet the Regional criteria for readiness for implementation? X ii Safeguard Policies Triggered by the Project 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 Conditions and Legal Covenants Legal Covenants Name Recurrent Due Date Frequency Retroactive Financing Financing Agreement Reference: Schedule 2, Section IV.B.1 Retroactive Financing Description of Covenant No withdrawal shall be made for payments made prior to the date of the Financing Agreement except that withdrawals up to an aggregate amount not to exceed SDR 7,900,000 (US$ 12,000,000 equivalent) may be made for payments made prior to this date but on or after June 30, 2012 for Eligible Expenditures. Name Recurrent Due Date Frequency Project Management Unit Financing Agreement Reference Article IV 4.01 (a) and Schedule Effectiveness 2, Section 1 A. 4. Description of Covenant The Recipient has established a Project Management Unit with staff, skills, and experience under terms of reference satisfactory to the Bank. Name Recurrent Due Date Frequency Integrated Fiduciary Agent Effectiveness Financing Agreement Reference: Article IV 4.01 (b) and Schedule 2, Section 1. A. 5. Description of Covenant The Recipient has recruited an Integrated Fiduciary Agent with relevant experience under terms of reference that are satisfactory to the Bank Team Composition Bank Staff Name Title Specialization Unit Nightingale Rukuba-Ngaiza Senior Counsel Task Team Leader LEGAM George Addo Larbi Lead Public Sector Management Specialist Co-Task Team Leader AFTP2 Wolfgang M. T. Chadab Senior Finance Officer Finance CTRLA Gibwa A. Kajubi Senior Social Development Specialist Social Development AFTCS Christina Biebesheimer Chief Counsel/Advisor Legal & Judicial Reforms LEGJR Christine Makori Counsel Legal & Judicial Reforms LEGAM iii Anne Khatimba Program Assistant Operations and Administration AFCE2 Moses Thaiya Gakumo Team Assistant Operations and Administration AFCE2 Lucy Musira Program Assistant Operations and Administration AFCE2 Stephen Mugendi Mukaindo Counsel Legal & Judicial Reforms LEGAM Nicholas Menzies Counsel Legal & Judicial Reforms LEGJR Joel Buku Munyori Procurement Specialist Procurement AFTPE Josephine Kabura Ngigi Financial Management Specialist Financial Management AFTME Jane Kibbassa Senior Environmental Specialist Environmental Specialist AFTN1 Non Bank Staff Name Title Office Phone City Catherine Gachukia Consultant, Operations Nairobi Barry Walsh Consultant, Justice Sector Reforms Sydney . Locations Country First Administrative Division Location Planned Actual Comments Kenya . iv  KENYA JUDICIAL PERFORMANCE IMPROVEMENT PROJECT PROJECT APPRAISAL DOCUMENT I. STRATEGIC CONTEXT A. Country Context 1. Kenya’s growth rate has recovered from a downturn in 2008–09 attributable to several key factors, including the post-election violence in 2007, the global economic crisis and a severe drought. Kenya’s growth slowed to 1.6 percent in 2008, the lowest rate since 2002 and substantially below the population growth rate of 2.7 percent. Growth recovered slightly to 2.6 percent in 2009 and picked up significantly to 5.6 percent in 2010 and 4.2 percent in 2011, a year when economic performance was affected by global turbulence and domestic shocks (inflation reached 19 percent, driven mainly by high food prices, and the country’s currency depreciated significantly). In the absence of external shocks and with improved macroeconomic stability, growth is expected to reach 5 percent in 2012 and 2013 1. 2. However, growth in Kenya has historically been lower than in Sub-Saharan Africa (excluding South Africa). Moreover, as illustrated by Figure 1, the differences are not insignificant: over the 1998-2007 period, annual growth in Sub-Saharan Africa was about one percent higher than in Kenya. In recognition of the need for growth, Kenya has been reflecting on the measures needed to increase growth rates in the long run. Among these measures, the country’s various economic strategies acknowledge that sustained economic growth requires investments in institutional reforms and adherence to the rule of law applicable to a modern, market-based economy in a human rights-respecting state (Vision 2030 2). 3. Although Kenya scores well on “voice, regulatory quality, revenue mobilization, public administration, and macroeconomic management