Sri Lanka - Legal and Judicial Reforms Project

Document of The World Bank Report No: 20135-CE PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 13,600,000 (US$ 18.2 MILLION EQUIVALENT) TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A LEGAL AND JUDICIAL REFORMS PROJECT May 12, 2000 Finance and Private Sector Development Unit South Asia Region  CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 1999) Currency Unit = LKR LKR = US$ US$ I = LKR71.50887 FISCAL YEAR July 1- June 30 ABBREVIATIONS AND ACRONYMS ADR Alternative Dispute Resolution Mechanisms CAS Country Assistance Strategy ESW Economic and Sector Work GOSL Government of Sri Lanka GPO Government Printing Office IBRD International Bank for Reconstruction & Development ICB International Competitive Bidding ICR Implementation Completion Report IDA International Development Agency IRR Internal Rate of Return JSC Judicial Services Commission LKR Sri Lankan Rupees NCB National Competitive Bidding NGO Non-Governmental Organization ORC Office of the Registrar of Companies PICU Project Implementation and Coordination Unit PMR Project Management Reports PPF Project Preparation Facility QCBS Quality & Cost Based Selection RFP Request for Proposal SOE Statement of Expenses SS Summary Sheets TA Technical Assistance TOR Terms of Reference USAID USAgency for International Development SIDA Swedish International Development Agency UNDP United Nations Development Programme UNOPS United Nations Office for Project Services Vice President: Mieko Nishimizu Country Manager/Director: Mariana Todorova Sector Manager/Director: Marilou Uy Task Manager: Maria Dakolias  -3- SRI LANKA LEGAL AND JUDICIAL REFORMS PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Govemnment strategy 3 3. Sector issues to be addressed by the project and strategic choices 4 C. Project Description Summary 1. Project components 7 2. Key policy and institutional reforms supported by the project 7 3. Benefits and target population 9 4. Institutional and implementation arTangements 10 D. Project Rationale I. Project alternatives considered and reasons for rejection 10 2. Major related projects financed by the Bank and other development agencies 11 3. Lessons learned and reflected in proposed project design 12 4. Indications of borrower commitment and ownership 1 3 5. Value added of Bank support in this project 13 E. Sunimary Project Analysis I. Economic 14 2. Financial 14 3. Technical 14 4. Institutional 14 5. Environment l 5 6. Social 15 7. Safeguard Policies 16 F. Sustainability and Risks 1. Sustainability 16 2. Critical risks 16 3. Possible controversial aspects 17  -4- G. Main Credit Conditions 1. Effectiveness Condition 17 2. Other 17 H. Readiness for Implementation 18 I. Compliance with Bank Policies 18 Annexes Annex 1: Project Design Summary 19 Annex 2: Project Descliption 24 Annex 3: Estimated Project Costs 29 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 30 Annex 5: Financial Summary 31 Annex 6- Procurement and Disbursement Arrangements 32 Table A. Project Costs by Procurement Arrangements Table Al. Consultant Selection Arrangements Table B. Thresholds for Procurement Methods and Prior Review Table C. Allocation of Loan Proceeds Annex 7: Project Processing Schedule 41 Annex 8: Documents in the Project File 42 Annex 9: Statement of Loans and Credits 43 Annex 10: Countr-y at a Glance 45 MAP(S)  SRI LANKA Legal and Judicial Reforms Project Project Appraisal Document South Asia Regional Office LEGLR Date: May 12, 2000 Team Leader: Maria Dakolias Country Manager/Director: Mariana Todorova Sector Manager/Director: Marilou Jane D. Uy Project ID: P044809 Sector(s): FF - Financial Adjustment Lending Instrument: Specific Investment Loan (SIL) Theme(s): Public Sector; Private Sector Poverty Targeted Intervention: N Project Financing Data C Loan M Credit FLI Grant D Guarantee LI Other (Specify) For Loans/CreditslOthers: Amount (US$m): 18.2 million Proposed Terms: Grace period (years): 10 Years to maturity: 40 Commitment fee: Standard (a variable Service charge 0.75% rate between 0 and 0.5% of the undisbursed Credit balance annual, set by the Executive Directors of IDA) Financing Plan: Source Local Foreign Total GOVERNMENT 2.94 0.00 2.94 IDA 10.17 8.03 18.19 Total: 13.11 8.03 21.14 Borrower: GOSL Responsible agency: MINISTRY OF JUSTICE AND THE JUDICIAL SERVICES COMMISSION Project Implementation and Coordination Unit Address: Ministry of Justice and Constitutional Affairs 2nd F, North Wing, Sayuru Sevana 46/12, Nawam Mawatha Colombo 2, SRI LANKA Contact Person: Ms. Thusitha D. Pilapitiya, Project Director Tel: 94-1-478452-3 Fax: 94-1-478451 Email: thusitha@eureka.lk Estimated disbursements ( Bank FY/US$M): FY 200 1 2002 1 2003 2004 2005 Annual 3.2 5.8 5.7 2.4 1.1 Cumulative 3.2 9.0 14.7 17.1 18.2 Project implementation period: 5 years Expected effectiveness date: 07/01/2000 Expected closing date: 06/30/2005 Xs PAU Fwr FRv Maiah 2M00  A. Project Development Objective 1. Project development objective: (see Annex 1) The broad project development objectives are to improve upon the existing legal and judicial framework by making it more efficient, transparent and responsive to the needs of the public at large and of the private sector in particular. More specifically, the project seeks to: (a) modeinize the legislative fiamework that impacts private sector activity; (b) improve the administration, monitoring, and regulatory functions of the Company Registry; and (c) build capacity of the judiciary and other institutions providing dispute resolution services. The proposed project will support the Government of Sri Lanka's long term legal and judicial reform program, and includes a selected set of priority activities identified by the Governnent as a first phase of this program. 2. Key performance indicators: (see Annex 1) Key Performance Indicators for the Legal and Judicial Reforms Project