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PROJECT: Strengthening the Rule of Law: Enhancing Effective and Transparent Delivery of Justice and Rule-Making

COUNTRY: Arab Republic of Egypt

Proposal for a Grant from the Middle East and North Africa Transition Fund (MENA TF)

PROJECT APPRAISAL REPORT Date: 21/03/2014

Appraisal Team

Team Leader

Team Members:

Sector Director:

Regional Director:

Sector Manager:

Ms. Carina SUGDEN, Senior Economist & PFM Specialist OSGE.2

Ms. Evelynne CHANGE, Principal Governance Officer OSGE.2

Mr. Labben MOHAMMED, Financial Management Specialist Consultant, ORPF 2.

Mr. Prajesh BHAKTA, Chief CPO, EGFO

Mr. Ayman ALGINDY, Procurement Officer , EGFO

Ms. Amira SOBHI, Disbursement Assistant, EGFO

Mr. Isaac LOBE NDOUMBE, Director, OSGE

Mr. Jacob KOLSTER, Director, ORNA

Mr. Jacob Diko MUKETE, Manager, OSGE.2

Peer Reviewers

(names, positions, units)

Mr. Ahmed YASSER, CPO ORNA

Mr. Wilfred ABIOLA, Chief Systems Analyst OSGE.O

Mr. Julien BANDIAKY, Snr Macro Economist, OSGE.1

Mr. Stephen OLANREWAJU, Consultant OSGE.O

Ms. Selpha NYAIRO, Snr. Procurement Specialist ORPF1

Table of contents

A. LIST OF TABLESii

B. LIST OF ANNEXESii

C. CURRENCY EQUIVALENTSii

D. FISCAL YEARii

E. ABBREVIATIONS AND ACRONYMSiii

F. GRANT Informationiv

G. RESULTS BASED LOGICAL FRAMEWORKv

I.INTRODUCTION1

1.1.Background information1

1.2.Project objectives2

1.3.Sector Department responsible for preparing the request3

1.4.Justification for the use of resources3

IIPROJECT DESCRIPTION4

2.1. Description of preparatory activities for whichresources are requested4

IIICOST ESTIMATES FOR THE PREPARATORY ACTIVITIES7

3.1. Detailed cost estimates7

3.2. Financing plan7

3.3. Cost estimates by component8

3.4. Cost estimates by expenditures category8

IVMODE OF PROCUREMENT OF SERVICES AND LIMITED GOODS FOR THE COUNTRY EXECUTED ACTIVITIES9

VIMPLEMENTATION SCHEDULE11

VIFINANCING ARRANGEMENTS11

6.1.Terms of financing11

Disbursement11

Financial management11

Institutional arrangements11

Monitoring and evaluation12

Audit12

6.2.Suspension of disbursement12

6.3.Letter of agreement and its annexes12

VIICONCLUSIONS AND RECOMMENDATIONS FOR BANKS CONSIDERATION12

7.1.Conclusion12

7.2.Recommendation13

A. LIST of TABLEs

Table 1 Financing plan

Table 2 Cost estimates by component

Table 3 Cost estimates by expenditures category (Global)

Table 4 Cost estimates by expenditures category (MENA TF AfDB as ISA)

Table 5 Cost estimates by expenditure category (MENA TF OECD as ISA)

B. LIST of ANNEXES

Annex I

Annex II

Annex III

Annex IV

Annex V

Annex VI

Annex VII

Detailed Project Costs

Draft Implementation Schedule

Procurements Arrangements

Financial Management Assessment

Egypt Judicial System

Court of Cassation Structure

Selected Macroeconomic Indicators for Egypt

C. currency EQUIVALENts

March 2014

1 UA = 10.79 EGP

1 UA = 1.55 USD

1 USD = 6.97 EGP

D. fiscal year

1st July-30th June

E. ABBREVIATIONS AND ACRONYMS

AfDB:African Development Bank

CC: Court of Cassation

CPO: Country Programme Officer

CMS Court Management System

CSO: Civil Society Organization

GCI: Global Competitiveness Index

GoE: Government of Egypt.

EGFO: Egypt Field Office

EGP: Egyptian Pound

GAP II: Governance Strategic Framework and Action Plan 2014-208

GDP: Gross Domestic Product

GECL: AfDB Legal Department

GPN: General Procurement Notice

IMF: International Monetary Fund

IRD: Institut de Recherche pour le Dveloppement

ISA: Implementation Support Agency

ISP: Bank Group Interim Strategy Paper

IT: Information Technology

MCIT:Ministry of Communication and Information Technology

MENA: Middle East and North Africa

MI: Mo Ibrahim Index

MIC-TAMiddle Income Countries Technical Assistance

MoJ: Ministry of Justice

MoPIC:Ministry of Planning and International Cooperation

MSAD:Ministry of State Administration and Development

OECD: Organization for Economic Co-operation and Development

ORNA: AfDB North Africa Regional Department 1

ORPF: AfDB Procurement and Fiduciary Service Department

OSGE: AfDB Governance, Economic and Financial Reforms Department.

PIT: Project Implementation Team

TF: Trust Fund

TYS: Bank Group Ten Year Strategy (2013-2022)

UNDB: United Nations Development Business

UNDP: United Nations Development Programme

USD: United States Dollar

WJP: World Justice Project

F. GRANT INFORMATION

Clients information

BORROWER: THE ARAB REPUBLIC OF EGYPT

EXECUTING AGENCIES: MINISTRY OF JUSTICE AND THE COURT OF CASSATION

Financing plan

Source

Amount (in thousand $US)

Instrument

MENA Transition Fund

4.121

Grant

OECD as ISA

1.500

Grant

AfDB as ISA

2.406

Grant

Government

2.000

AfDB MIC- TA

0.320

Grant

TOTAL COST

6.226

ADBs Key Financing Information

Grant currency

US dollars

Time-frame - Main Milestones (expected)

Project approval

May 2014

Effectiveness

September 2014

Completion

September 2017

Final Disbursement

April 2017

G. RESULTS-BASED LOGICAL FRAMEWORK

Country and project name:

EGYPT

Purpose of the project:

Consolidating the Rule of law and enhancing an enabling business environment through (i) enhancing efficiency and effectiveness in the delivery of justice and (ii) strengthening inclusion in the rule-making process.

Results chain

Performance indicators

Means of verification

Risks/mitigation measures

Indicator

(including CSI)

Baseline

Target

Impact

Improved and Transparent Rule of Law for Inclusive and Competitive Growth

Global Competitiveness Index (GCI)

World Justice Programme (WJP) Rule of Law Index

Mo Ibrahim Index (MI)

Overall 118/148 GCI 2013-14 (Institutions score 3.3)

2013 WJP 51/97 Open gvt, 73/97 Civil Justice, 56/97 Criminal Justice.

Overall 19/52 2013; Rule of law 50.8/100

3.7 GCI Institutions

45/97

55 Rule of Law,

GCI 2017-18

WJP 2016/17

60/97 Open gvt, 60/97 Civil Justice

48/97 Criminal Justice

MI 2018

Risk #1 Macro-economic risk: Growing and unstable fiscal imbalances are a threat to macro-economic stability Mitigation: These risks are well understood by gov, which is introducing vital policy reforms

Risk # 2 Political risk: The recent political environment in Egypt has been characterized by frequent changes in government. The coming election may lead to a configuration of the political players which could pose a risk to the project in erms of institutional memory and political commitment.

Mitigation measures: Continued engagement with the government through MoPIC to ensure that there is universal support across political divide for the measures needed to reverse the current situation.

Outcome 1

Strengthened Institutions for effective justice delivery

Volume of backlog reduced %

% of case files archived

No. Court services in active use by the public

Backlog of up to 250,000 cases

Paper storage at the CC upto 1,000,000 cases not archived

25% backlog reduced end 2017

All new concluded cases archived, old Cases upto 2010 archived by 2017

All key judgments of CC available by end 2016

Website verification

Project Progress Reports

Outcomes

Outcome 2

Enhanced transparency accountability and participation in the justice sector

No. of laws enacted with public consultative process

No. of hits on the consultation Portal

Ineffective avenues of consultative processes at Ministry of Justice

CC website not dynamic or interactive

At least two laws enacted with Public consultation end 2017.

5 m hits on consultation portal end 2017


Project progress reports

Parliamentary reports

Component 1: Supporting the Efficient and Effective Delivery of Justice by the CC

Outputs

Output 1.1 Reform action plan for CC designed

Reform Action Plan

-

2015

Project Progress Report (PRG)

Risk # 3 Capacity and Implementation Constraints: Weak institutional and human capacities resources capacity could hamper implementation.

Mitigation: Capacity building has been built into the project components

Output 1.2

Automated Case management for CC system

Case mngmt system in place

No automated systems in use

Case mngmt system in place by 2017

Project Progress Report

Output 1.3

Staff with capacity to use automated system

No.of staff trained disaggregated by men and women

Limited IT skills

1000 staff trained on basic IT skills advanced training for 20 technicians


Output 1.4. Information disseminated and awareness raised on new court system

Production on promotional material

Awareness raising events for non-gov (CSO, Private sector etc.) and gov. stakeholders

Number of visitors on portal

-

Promotional material and training by end 2016

Project Progress reports, website verification

Component 2: Supporting transparent and participatory law making in the Ministry of Justice

Output 2.1

System for effective stakeholder engagement in rule making

Consultation process designed

Action plan for inclusive rule making (2015)

Project Progress Report.

Output 2.2

Staff trained and inclusive rule-making

No. of staff trained disaggregated by gender

No. of toolkits developed

No. of secondment to OECD and vice versa to MoJ & CC

-

50 number of staff trained by end 2016

At least 6 toolkits on legislative drafting developed end 2017

At least 2 secondments undertaken in project time-frame


Output 2.3. Laws amended/drafted with consultation

No. of laws amended or drafted with consultation

Limited consultation

At least four legislations drafted using new techniques end 2017

Project Progress Report, Parliamentary reports

Output 2.4 Consultation Portal and database established at MoJ

Existence of portal and database

-

MoJ portal with database for legislation and toolkits

2017

Project progress reports


Key activities

components

Inputs

The project will have three components

Component1: Supporting the Efficient and Effective Delivery of Justice by the CC

Component 2: Support Transparent and Participatory Rule Making at the MoJ Component 3: Project Management and Monitoring

MENA TF will provide USD 4, 226,000 to finance these components and related contingencies.

Government will provide network infrastructure costed at USD 2 mill and other in kind support.

12

I.INTRODUCTION

1.1 Background information

1.1.1 Egypt remains locked in a protracted process of political transition with social and economic challenges growing. There have been a number of regime changes since the resignation of the long-serving leader Hosni Mubarak in February 2011. Meanwhile, the country successfully approved a new Constitution in January 2014, thus achieving a key milestone of the transition roadmap that was issued after the ousting of President Morsi in July 2013. Presidential elections are planned to be held by July 2014 followed by parliamentary elections for the establishment of new Parliament by September 2014.

1.1.2Economic activity in Egypt continues to be weighed down by political unrest, structural bottlenecks, and fiscal challenges. GDP growth has slumped down to about 2% post the January 2011 revolution and is expected to remain that way for the rest of 2014 and into 2015. The fiscal and balance-of-payments deficits have deteriorated with fiscal deficit projected to reach 11.5% of GDP in 2014. Three years after the Arab Spring, Egyptians are still waiting to reap the full benefits of lasting social, political and economic change. Poverty is on the rise with the head count ratio of national poverty rates for 2013 registered at 26.3% (up from 2.16% in 2011) .Egypt has potential both for structural transformation towards a more productive economy and for optimal use of its immense resource wealth, provided that vital policy reforms are introduced.

1.1.3Promoting an inclusive growth agenda will require significant efforts towards addressing longstanding governance challenges. The lack of solid citizenship participation mechanisms and limited access to public information have affected the ability of the government of Egypt to provide quality services to its citizens and be accountable to them. According to the 2013 World Justice Project (WJP) Rule of Law Index, Egypt was ranked 51 in terms of open government. The civil justice system is slow and subject to political pressure. Discrimination of women and minorities is also of concern. The 2014 WJP Index, ranks Egypt below the MENA regional average on Rule of Law, with particular weaknesses in areas such as due process of law, reasonable delay in processing of cases and right to information. Egypt was one of the greatest deteriorations in the 2013 Mo Ibrahim Index on the category of rule of law which also includes assessment on judicial process. The MI safety and rule of law score of 50.8/100 is a drop from the score of 57 the previous year and an overall decline of -12 since 2000. According to Transparency Internationals 2013 Global Corruption Barometer only 16% percent of Egyptians believe that there has been an improvement in corruption control after the revolution (Nearly 65 percent of Egyptians feel that corruption has increased significantly or at least somewhat since the revolution). This can be a further signal of ineffective judicial systems and weakened rule of law.

1.1.4The judiciary in particular is confronted with a growing lack of trust. The Court of Cassation (CC), the highest Judicial body in Egypt, charged with among others interpretation and application of the rule of law, supervisory function over Judges actions and reposition of judicial precedent, meets an increased demand for service with inability to respond effectively given an archaic and rudimentary court management and case storage system. Apart from day- to-day cases, the CC faces a backlog of 250,000 cases growing by additional 30,000 cases per annum on average and a log-jam of close to 1,000,000 un-archived cases. This makes for a slow and ineffective system for the delivery of justice.

1.1.5The Ministry of Justice (MoJ) that is responsible for providing support for the administration of justice, lacks coherent and transparent procedures to draft legislation that meets the public interest. There are limited public consultation and accountability mechanisms to assure quality in legislation, which creates a risk of regulatory capture by powerful interest groups. Access to information around legislation, judicial proceedings and processes is also limited There is no system in place that allows for using standard legislative drafting techniques or to assess the impact of the proposed legislation. With the approval of the new Constitution in 2014, there is a need to amend several existing legislations and draft new pieces of legislation that are in conformity with the provisions of the new Constitution. It is therefore opportune to strengthen inclusion in the rule making process so as to meet the aspirations and needs of the public and the new Egypt.

1.1.6In the current environment of reform in Egypt, the national justice system can play a critical role in restoring confidence, promoting accountability and ultimately restructuring the national economy to promote competitiveness for economic growth and transformation. Apart from the crucial traditional role played by the Judiciary in safeguarding human rights, ensuring access to justice and maintaining rule of law, it is a central pillar in terms of enforcing contracts, protecting property and other rights, commercial dispute resolution, resolving matters relating to insolvency and bankruptcy all of which are important structural components of an attractive business environment. Developing institutions and mechanisms to ensure good rule making is of greater importance in Egypt post revolution than before. This is because regulations are the instruments that are used by governments to implement policies and effect change in society. They are essential elements of a successful transition. They need to serve the public interest and be informed by the legitimate needs of those interested in and affected by regulation

1.2 Project Objectives

1.2.1 Overall the project aims at contributing to consolidating the rule of law and enhancing an enabling business environment through (i) enhancing efficiency and effectiveness in the delivery of justice and (ii) strengthening transparency and participation in the rule-making process.

1.2.2 The first objective addresses the need to improve the delivery of justice, by strengthening rule of law - which is addressed at the level of the CC. The Project will aim to design and implement an automated case management system for the CC; build capacity of CC staff to use new systems; reduce case delays and improve the provision of judicial services to the public.

1.2.3 The second objective is linked to the broader agenda of Government on ensuring greater transparency and access to information. The project will work with the MoJ to build capacities in legislative drafting and inclusion in the rule-making process comprising activities such as training, technical assistance, peer exchanges, secondments and study tours and IT solutions.

1.2.4 Several other incidental benefits will flow from this project. (1) Improvements to the CC will have a demonstration effect for other parts of the court system. The experiences in easier access to the court by means of electronic filing, improved case management, better archiving of documents and publishing judgments in real time electronically will serve as a best practice that can be adapted to other courts. (2) Improvements and developments in better regulation; the use of e-consultation in engaging stakeholders and the development of improved techniques of legislative drafting can also be applied with some modifications to other parts of the justice sector in Egypt for example the Council of State, which plays a crucial role in the review of draft legislation given its role in handling appeals on administrative matters.

1.3 Sector Department responsible for preparing the request

1.3.1 The Governance, Economic & Financial Reforms Department (OSGE) has prepared this request, in close collaboration with Egypt Filed Office (EGFO), the Regional department (ORNA) and the Organization for Economic Co-operation and Development (OECD).

1.4 Justification for the use of resources

1.4.1A fair and effective justice system is an important guarantor of the rule of law, which will encourage inward investment and support the functioning of society and the economy. This in turn will foster sustainable and inclusive economic growth by ensuring that a central part of the state functions efficiently. This is aligned with the Transition Funds objective to strengthen governance and public institutions in Egypt, and drive change in the high impact area of justice, towards enhancing economic governance and sustainable growth.

1.4.2The project is in line with the national strategic priorities of the interim Government, as outlined on the 12th September 2013 in its Program for Economic Development and Social Justice for the transition period, specifically the priority to ensure fair and efficient public service delivery. This is to be achieved by, among other things, enhancing court management systems and rule making through the implementation of E-Government information technology and communications (ICT) systems. Egypt has a national ICT Strategy 2013-2017 which focuses on integrating ICT across all sectors to serve national development priorities. The automation of legal proceedings and focus on e-justice are a fundamental cornerstone of this strategy. The MoJ has been one of the first Ministries to embrace ICT techniques and has piloted a number of e-justice projects, including automation of a select number of courts of first instance and notary services. It is these modest gains that the Project seeks to build upon and catalyze.

1.4.3The need to increase public trust and confidence in the justice sector by enhancing participation and engagement is also attuned to the current environment in post-revolution Egypt. The Post 2015 UNDP national consultations in Egypt revealed that stakeholders are eager to discuss the future they want for themselves as well as their country, with governance and accountability as one of the key areas of concern.

1.4.4The Government of Egypt is fully committed to the project and will through the Ministry of Communication and Information Technology (MCIT) provide the underlying infrastructure- cables and network, required for the automation of legal proceedings at the Court of Cassation. This process is at an advanced procurement stage with an estimated cost of EGP 13 million/USD 2 million. The launch of this project to coincide with this infrastructure work will be catalytic and opportune. In addition the Ministry of State Administration and Development (MSAD), which coordinates E-Government initiatives and has previously provided help in designing the website of the CC including provision of some equipment and help towards an existing basic case registration system, has also agreed to offer technical advice and facilitation support during the roll out of the project as may be required.

1.4.5The Project is consistent with the Bank Groups extension Interim Country Strategy Paper (i-CSP) 2014-2015[footnoteRef:1] for Egypt that places special emphasis on issues related to governance and reforms for improved public sector efficiency: (i) to strengthen the business environment and (ii) to improve the inclusive nature of national growth. By strengthening participation, rule of law and access to Justice for all Egyptians, it also meets the core objective of the Banks Group Strategy (2013-2022) (TYS), to promote inclusive growth through strengthening governance and accountability. This is taken forward in the Banks Governance Strategic Framework and Action Plan 2014-2018 (GAP II) which also contains a special focus on strengthening demand side accountability and improving the justice system for improved business environment, which the project seeks to promote by enhancing stakeholder consultation and participation in the rule making process and enhancing the efficiency of the justice system. The Bank is also contributing to the financing of the project with the provision of a grant to cover the design and preparatory stage of the automation of the CC. [1: The Extension of the i-CSP is scheduled to be presented to CODE in April 2014]

1.4.6Women are marginalized from participation in the justice sector in Egypt, in particular in terms of appointment as Judges. There are also several barriers to womens economic participation and empowerment. The project is also expected to positively impact gender equality by promoting access to justice and rule of law as it seeks to support the review and drafting of legislation in alignment with the constitution, specifically focusing on legislation that ensure equal rights to men and women. This is also in furtherance of the Bank Group Gender Strategy, 2014-2018.

1.4.6The proposal builds on research and analysis undertaken by the OECD, including the MENA-OECD Practitioners guide for engaging stakeholders in the rule-making process, OECD E-Government Studies- Egypt, and a report by the French Institute for Research and Development (IRD) La droit a un delai raisonnable devant la cour de cassation dEgypte from 2013. The AfDB has also, in the course of the preparation of this project, contracted a rapid needs assessment/ IT diagnostic of the Court of Cassation, to inform the design of the project. Critical lessons and best practices from previous interventions in the Justice sector have been taken into consideration, including planning for the scalability of the project and ensuring adequate attention to building the technical capacity to manage the new systems. An important issue addressed is sustainability of the intervention through providing an holistic solution for modernization of the Cassation and reinforcing the capacity for its continued implementation.

1.4.7The OECD and the AfDB will bring valuable and complementary experience to the project. The Bank has accumulated important experience across the continent on implementing projects aimed at strengthening institutions and enhancing efficiencies through e-government systems. The OECD can provide well-tested methodologies to engage in participatory approaches and mobilize peer-to-peer advice from MENA and OECD countries to support reform and capacity building efforts for enhanced Governance in the Justice sector.

IIPROJECT DESCRIPTION

2.1. Description of activities for which resources are requested and their outputs: The funding to be provided shall support the MoJ and the CC to implement activities that are expected to contribute to two outcomes: 1) strengthened institutions for effective delivery of justice and 2) enhanced transparency, accountability and participation in the justice sector. The project has two main components, which will be implemented with the support of AfDB and OECD as ISA in their areas of comparative advantage:

Component 1: Supporting the efficient and effective delivery of justice by the Court of Cassation. This component focuses on implementing key reforms and establishing systems for an automated case management system in the CC with the ultimate view to significantly reduce the time spent on each case, reduce the current backlog of cases and enable much more efficient research and open access to court files and judgments. The specific activities shall entail the following:

1a) Preparing and implementing a reform action plan of the Court of Cassation

Based on the assessment conducted by the French Institute for Research and Development (IRD), this sub-component will develop a reform action and implementation plan on the priority recommendations of the assessment. This will be achieved by providing training and personal development opportunities to the CC and other critical stakeholders covering topics such as automation of the Court; Case management; Required legislation; Internal continued training programme; Judicial independence, judicial accountability, judicial ethics and conduct; and Access to judicial information and verdicts. This activity will be implemented with support of OECD.

1b) Design of an integrated modern automated court management system: This sub-component provides the required groundwork for the development of the automated case management system for the court of cassation. This will be done with expert technical assistance, and will entail undertaking a detailed study of the requirements for an automated court management system; proposing options for its design; preparing the bidding documents for the systems integrator and for the required IT equipment; managing the procurement process and advising the CC on the management of the project. The activities under this sub-component will be financed by the AfDB as its co-financing contribution to the overall project, and will be implemented with support of the AfDB.

1c) Implementation of the integrated court management system: Building on the design and proposed business processes as determined by the previous sub-component, a systems integrator will be sourced to develop and customize software for the automated case management system and ensure its full implementation, including the installation of the necessary hard-ware and IT equipment, configuring security systems for the network and implementing helpdesk and network management systems. This will be carried out in full consultation with the relevant stakeholders, in particular the MCIT, that shall be providing the underlying network infrastructure and MSAD both of whom have been engaged in supporting the implementation of the e-justice programme in Egypt. This will be implemented with support of the AfDB.

1d) Capacity building and training of users for the new system: A user profile has been established which shows that the staff and Judges at the CC shall need to be provided with a continuous training program to build the IT skills required to confidently use the automated system. It is estimated that around 1000 personnel, including judges need to be trained. The training packages shall include basic IT training for all personnel; specialized training for the 450 court clerks on the new automated system as well as help desk and advanced training for 20 IT personnel that shall be responsible for the automated systems administration and maintenance. This will be implemented with the support of AfDB.

1e) Dissemination to stakeholders, dialogue with private and Civil Society: This component will deliver high-impact outputs that will change the way the CC operates and interacts with the stakeholders. Dissemination of the Projects objectives and results will be therefore important to ensure control and uptake on behalf of the stakeholders. For example, the Project aims to ameliorate the accessibility of verdicts. Lawyers, bar associations and the public at large need to be informed about these important changes. This will be implemented with the support of OECD.

In summary the overall targeted outputs expected under component 1, include a reform action plan for the court of cassation; a fully automated system for legal proceedings and archiving; staff capacitated to use the new systems; clients (public, lawyers, prosecutor etc) informed of new court services and able to access them.

Component 2: Transparent and open rule-making. This will focus on implementing new processes for drafting legislation in the MoJ in line with best international practices, such as use of impact assessment and better public consultation and other techniques to assure quality and demand driven legislation. These new techniques will be piloted on a number of specific pieces on legislation that will be prioritised by the MoJ in line with the demands of the new constitution. It is expected that the legislation necessary to modernise the Court of Cassation and support e-justice systems will also be piloted. Specific activities include the following:

2a) Implementation plan for participatory and transparent rule-making: This will entail a peer review exercise of mapping and assessing the current situation in Egypt with a view regarding the rule-making and the functioning of the MoJ in Egypt. This peer-review exercise will result in an implementation plan that will be rolled out over the Project period. This will be implemented with the support of OECD.

2b) Capacity building to improve transparent rule-making: Based on an introductory seminar for 50 staff from the MoJ, 20 public officials will be selected for a 2 distinct Train-the-Trainer modules. The modules will consist of 5 two-day seminars and 1 study visit each with the following topics covering legislative drafting techniques and coordination and modalities for applying Regulatory Impact Assessment and Public Consultation. This will be implemented with the support of OECD.

2c) Implementing processes and tools for effective and transparent rule-making: This will consist of technical assistance to issue an explicit policy on regulatory quality including a policy on communication, consultation and engagement. Several tools including a legislative drafting manual for primary and secondary legislation, a code of practice for consultations and a toolkit for applying regulatory impact analysis to new legislation will also be developed. This will be implemented with the support of OECD.

2d) Provision of implementation support to draft new legislation: Over the past few months, the MoJ has drafted around 30 new laws and is expected to issue and amend a number of priority legislations in line with the new constitution. The activities under this sub-component will contribute to this exercise as they aim at increasing expertise on rule-making and legislative drafting, procedural and substantive aspects of the implementation of specific laws. The legislation may include priorities of the MoJ such as legislations related to the establishment and management of electronic courts, the right of access to information act, legal system monitoring methodologies, a review of reconciliation and mediation legislation, women, youth and children-related acts. The activities will complement the work undertaken by the World Bank and the IFC to assist the GoE on drafting the freedom of information legislation and mediation law and will attribute a particular and direct focus on aligning Egypt to the Open Government Partnership, a priority of the Government. This will be implemented with the support of OECD.

2e) Database of legislation and best practices in legislative drafting: The activities under this sub-component will entail provision of consultancy services to activate the portal for e-consultation on legislation, create a data base of legislations by the MoJ as well as a record of best practices and toolkits in legislative drafting including the outputs of the project for peer learning and institutional memory . It will also include the addition of these elements to the website of the Ministry of Justice, with a link also to that of the CC. Limited IT equipment will be procured to facilitate this. This will be implemented with the support of AfDB.

The outputs of the second component will thus include: an action plan for participatory and transparent rule-making in Egypt; staff trained on new tools and methodology; toolkits and manuals developed and made available; legislation drafted using new methodology; and an e-portal to ensure easy access to new information.

IIICOST ESTIMATES FOR THE ACTIVITIES

3.1. Detailed cost estimates

3.1.1The estimated total cost of the project, net of taxes and duties, is USD 6,876,300. The AfDB will provide USD 320.000 as co-financing contribution to finance the initial design stage and preparatory work for the automated Court Management System (CMS) for the CC, and the Government will be providing USD 2 million in counterpart funding to cover the required underlying infrastructure for the CC. Price and physical contingencies of 6% have been factored into the project cost. (See annex I for detailed project costs)

3.2. Financing plan.

3.2.1 The Project costs of the activities to be supported by the AfDB will be financed by the MENA TF according to the financing plan below.

Table 1 Financing Plan

Source

Costs in Thousands $US

Percentage of total amount (%)

Foreign Currency

Local Currency

Total

MENA Transition Fund

3,716

405

4,121

64.0%

OECD as ISA

1,601

-

1,601

24.9%

AfDB as ISA

2,115

405

2,520

39.1%

Country Co-Financing

-

2,000

2,000

31.1%

AfDB Co-Financing

320

320

5.0%

Total cost

4,036

2,405

6,441

100.0%

3.3. Cost estimates by component

Table 2 Cost estimates by component

Components


Percentage of total amount (%)

Foreign Currency

Local Currency

Total

Component 1: Supporting the Efficient and the Effective Delivery of Justice by the CC

2,345

53

2,397

37.2%

Component 2: Supporting transparent and participatory law making in the MoJ

1,043

108

1,151

17.9%

Component 3: Project management and monitoring

0

222

222

3.4%

Total base project costs

3,388

382

3,770

58.5%

contingencies (6%)

113

23

136

2.1%

ISA indirect costs (staff time, travel for AfDB and OECD staff)

215

0

215

3.3%

Budget to be requested from the MENA Transition Fund

3,716

405

4,121

64.0%

Government Constribution

2,000

2,000

31.1%

AfDB Co-financing

320

320

5.0%

Total project costs

4,036

2,405

6,441

100.0%

3.4. Cost estimates by expenditures category

Table 3 Cost estimates by expenditures category (Global)

Components


Percentage of Foreign Currency (%)

Foreign Currency

Local Currency

Total

A. Goods

655.0

36.8

691.8

94.7%

B. Services

2315.5

224.0

2539.5

91.2%

C. Operating Cost

417.2

121.5

538.7

77.4%


3387.7

382.3

3770.0

89.9%

contingencies (6%)

113.0

23.0

136.0

83.1%


215.0

0.0

215.0

100.0%


3,715.7

405.3

4,121.0

57.7%

Government Contribution

0.0

2000.0

2000.0

0%

AfDB Co-financing

320.0

320.0

5%

Total project costs

4,035.7

2,405.3

6,441.0

62.7%

Table 4 Cost estimates by expenditures category (AfDB as ISA)

Components



Foreign Currency

Local Currency

Total

A. Goods

655

37

692

94.7%

B. Services

1233

224

1457

84.6%

C. Operating Cost

0

122

122

0.0%


1888

382

2270

83.2%

contingencies (6%)

113

23

136

83.1%

ISA indirect costs (staff time, travel for AfDB staff)

114

0

114

100.0%


2115

405

2520

83.9%

Total project costs

2115

405

2520

84%

Table 5 Cost estimated by expenditures category (OECD as ISA)

Components



Foreign Currency

Local Currency

Total

A. Goods

0

0

0

-

B. Services

1083

0

1083

100.0%

C. Operating Cost

417

0

417

100.0%


1500

0

1500

100.0%

contingencies (6%)

0

0

0

0.0%

ISA indirect costs (staff time, travel for OECD staff)

101

0

101

100.0%


1500

0

1500

100.0%

Total project costs

1601

0

1601

100.0%

IVMODE OF PROCUREMENT OF SERVICES AND GOODS FOR THE COUNTRY EXECUTED ACTIVITIES

4.1.1Procurements foreseen to be financed by the Grant include Consultancy Services and the purchasing of Goods. All procurement of consulting services financed by the Grant will be in accordance with Bank's Rules and Procedures for Procurement of Goods and Works dated May 2008 as revised in July 2012 and Rules and Procedures for the Use of Consultants dated May 2008 as revised in July 2012 using the relevant Bank Standard Bidding Documents. The Executing Agencies will be responsible for the procurement process.

4.1.2 The various items under different expenditure categories and related procurement arrangements are summarized in Annex. 1. Each contract to be financed by the grant, including the different procurement methods or consultant selection methods, estimated costs, prior-review requirements, and time frame are agreed between the Grantee and the Bank and will be provided in the Procurement Plan.

4.1.3Procurement of Goods: The goods to be procured under the grant include: (i) IT equipment for the system of the administrative work flow in the Court will be procured through ICB method as described by the Section II of the Bank rules and procedures for procurement of Goods and Works; and; (ii) IT equipment for MOJ & project Implementation unit and All other Goods foreseen under the grant will be procured through a shopping method.

4.1.4Procurement of Consulting Services: Procurement of services under the grant include: 2 main assignments that require firms to implement. Both assignments will be procured through the Quality and Cost Based Selection (QCBS) method as described in Section II of the Bank rules and procedures for the use of consultants. The Audit contract estimated at US$30,000 will be procured through a Consultant Qualification Selection (CQS) method based on a short list of qualified financial audit firms. Others consultant services which all are designed to be carried out by individual consultants will be procured based on the qualifications for the assignments of at least 3 consultants assessed, based on their respective Curriculum Vitaes (CVs).

4.1.5Training: Training and capacity building is a critical element of the project. A training plan and budget will be submitted to the Bank annually for prior review and approval. The training plan will identify the general framework of training and similar activities for the year; including the nature; relevance and objectives of training; number of participants; cost estimates and the translation of the knowledge gained in the actual implementation of project components.

4.1.6Operational cost: All Operational cost items will be managed in accordance to the Executing Agencys appropriate internal rules and manual. A procurement assessment was done of the Executing Agencies. The MoJ and CC currently do not have required procurement and financial management capacity required for an externally financed project, the project shall therefore provide for the recruitment of such staff (see annex IV).

General Procurement & Specific Procurement Notices

4.1.7The General Procurement Notice (GPN) will be issued for publication in UNDB online and on the Banks Internet Website upon approval of the Financing of the Grant.

Procurement Plan

4.1.8As part of the preparation of the project, the Recipient shall prepare and, before signing the Financing Agreement, furnish to AfDB for its approval, a Procurement Plan for the activities involving AfDB as ISA, which is acceptable to the Bank setting forth the:

Particular contracts for the goods, and services required to carry out the project during the initial period of at least 18 months,

Proposed methods for procurement of such contracts that are permitted under the Financing Agreement, and

Related Bank review procedures.

4.1.9The Recipient shall update the Procurement Plan annually or as needed throughout the duration of the project. All changes to the procurement plan shall need prior approval from the Bank. The Recipient shall implement the Procurement Plan as approved by the Bank.

VIMPLEMENTATION SCHEDULE

5.1 The project will be implemented over a period of three years. The detailed overview of the timing of various activities and related procurements is provided in annex II and III.

VIFINANCING ARRANGEMENTS

6.1 Terms of financing

Disbursement

6.1.1 The disbursement of the MENA TF will be done as per the Banks current procedures of disbursement, including through a special account for expenses related to operating costs, including the payment of salaries for the staff of the Project Implementation Teams (PIT). As the project has two spate PITs, it is recommended that each manage its own Special Account- two separate account shall be opened. Direct disbursement shall be used for the large contracts, including the consultancy firms that will deliver the automated court system. Evidence of the opening of the Special Accounts at a bank acceptable to the AfDB and the furnishing of the details of these accounts will be a condition precedent to the disbursement of funds.

Financial management

6.1.2 Under the terms of the Transition Fund, the funds shall be administered in accordance with the Bank applicable policies and procedures. For this purpose, the MoJ and the CC will establish suitable systems and procedures to ensure control of the proper use of project resources and reliability of financial information, monitor project resources and expenditures by component and activity. The MoJ and the CC will maintain independent accounts for the financed activities in accordance with sound international accounting practices. The Project will be subject to financial reports in accordance with the Bank requirements including quarterly financial reports on project financial performance and position (statement of income and expenditure, statement of special account, with supporting documents,) and annual financial statements, in conformity with the Bank Financial Management Guidelines.

Institutional arrangements

6.1.3The project will be executed by the MoJ and the CC with implementation support from the AfDB, with certain activities executed directly by the OECD. The activities and their related outputs to be executed by the Government with the support of the AfDB are clearly delineated from those to be directly executed by the OECD. The OECD and the AfDB shall closely coordinate to ensure full complementarity

6.1.4The MoJ and the CC shall each have separate PITs that shall be responsible for coordinating and managing the day-to-day execution of activities for the respective institutions. The PITs shall as a minimum include a project coordinator, a procurement officer and an administrative/finance officer. The project shall provide for the recruitment of a procurement and financial management officer as outlined in paragraph 4.1.6 to be shared by the two agencies on a part-time basis. The designation of personnel from the CC and the MoJ respectively to comprise the PITS shall be retained as a condition precedent for the first disbursement. The process of recruitment of the Procurement and financial officers shall commence immediately the project becomes effective. It is expected that the procurement and finance officers shall be in office within three months of the commencement of the project. The PITs shall report to the Senior Management of the departments in which they are established within the Court of Cassation and Ministry of Justice.

6.1.5To ensure harmonization, building synergies and coordination across the project, and in particular between the main beneficiaries, a coordination committee will be established, chaired (alternately) by the MoJ and the CC, and shall include all the main Government stakeholders for the project, including the MoJ , the CC , MCIT, MSAD, MoPIC as well as the Development Partners engaged in the Justice Sector. The role of the committee will be to share information and peer learning at a strategic level relating to the implementation of the project in particular, and the justice sector reforms in general. As agreed with the stakeholders in Egypt, this Committee will not have a direct management role over any of the PITS which will be managed by the CC and MoJ as outlined above.

Monitoring and evaluation

6.1.6The Monitoring and evaluation of the project and its expected results will be coordinated by the PITs, which shall regularly report against the targets indicated in the results framework of the project. Quarterly monitoring and progress reports will be prepared and submitted to the AfDB and the OECD. A mid-term review will be carried out to assess and draw lessons from the project and provide an opportunity to adopt any actions that may be required to ensure that the project meets its development objectives. A final report will be prepared at the end of the project in accordance to the MENA TF specifications.

Audit

6.1.7Financial Statements will be submitted for annual audits and a final audit at the end of the project. An audit, based on terms of reference approved by the Bank, will be submitted annually to the Bank, no later than six months after the end of each Egyptian financial year.

6.2 Suspension of disbursement

6.2.1. Disbursement from the MENA TF will be subject to AfDB disbursement rules, in particular the rules on suspension of disbursements. Disbursements can be suspended, for example in case of non-compliance with the financial agreement provisions.

6.2 Letter of agreement and its annexes

Following the approval of the request by AfDB, AfDBs Legal Department (GECL) will prepare a Letter of Agreement. The duly-mandated representatives of the Ministry of Planning and International Cooperation acting on behalf of the Government of Egypt will be the signatories of the grant agreement.

VIICONCLUSIONS AND RECOMMENDATIONS FOR BANKS CONSIDERATION

7.1 Conclusion

There is an identified need for support towards building institutional capacity to enhance openness, transparency and performance in the justice sector in Egypt. The Project will support the Court of Cassation and Ministry of Justice of Egypt to improve the transparency, efficiency and effectiveness of the court system and rule-making, provide timely access to appellate justice and access to judicial information and, thereby, increase public trust and confidence in the justice sector. By extension, the project will contribute to consolidate pillars of building democratic systems and the legal security for citizens and businesses.

7.2 Recommendation

It is recommended that a grant for an amount not exceeding USD 4,121,000 for the Government of Egypt be requested from the Middle East and North Africa Transition Fund to implement this project, with the OECD and AfDB as ISAs.

ANNEX I - Detailed Project Costs

THE REPUBLIC OF EGYPT

Strengthening the Rule of Law: Effective and transparent delivery of justice and rule-making in Egypt

1,000

1.15

COMPONENT

Executing body

Unit

Qty

Unit cost in USD

Total Cost in USD

Total in thousands USD

MENA TF (OECD as ISA)

MENA TF (AfDB as ISA)

AfDB

GoT

Component 1: Supporting the Efficient and the Effective Delivery of Justice by the Court of Cassation

4,717,200

4,717

457

1,940

320

2,000

Activity 1.1: Preparing a reform action plan for the court of cassation - reviewing the current system, making recommendations on priority reforms, legislative and process changes (OECD executed)

279,200

279

279

0

0

SERVICES

180,000

180

180

0

0

Technical assistance

OECD staff and experts

OECD

lumpsum

1

180,000

180,000

180.00

180.00

OPERATING COSTS

99,200.00

99.20

99.20

0.00

0.00

Air ticket round-trip, per diem (incl. accomodation) and terminal charges

OECD

Lumpsum

8

2,000

16,000

16.00

16.00

Study visits for 10 delegates

OECD

lumpsum

10

2,500

25,000

25.00

25.00

Interpretation, Editing, Proofreading, Publication, Dissemination

OECD

Lumpsum

1

47,000

47,000

47.00

47.00

Seminar venue (2 days) cairo

OECD

Lumpsum

4

1,400

5,600

5.60

5.60

Seminar venue (4 days) for study visit

OECD

Lumpsum

4

1,400

5,600

5.60

5.60

Activity 1.2: Designing an automated case management system for enhanced service delievry for the court of cassation (Gvt/ CC executed)

320,000

320

0

0

320

SERVICES

300,000

300

0

300

0


300,000

300

300.00

Consulting Firm to undertake detailed study and design business processes, detailing requirements and prepare detailed ToRs for the systems integrator and training (Team with expertise- Judicial Reform; Busines Processes; IT Infrastructure; Capacity Building) (6 months duration)

Gvt

Lumpsum

1

300,000

300,000

300.00

300.00

OPERATING COSTS

20,000

20

0

20

0

Seminares and dissemination workshops

Gvt

Lumpsum

4

4,500

18,000

18.00

18.00

Adverstising

Gvt

Lumpsum

1

2,000

2,000

2.00

2.00

Activity 1.3: Implementing automated case management system for enhanced service delievry for the court of cassation (CC executed)

3,643,000

3,643

0

1,643

2,000

SERVICES

970,000

970

0

970

0


970,000

970

0

970

0

Consulting Firm (systems integrator and capacity building) (18mth)

Gvt

Lumpsum

1

970,000

970,000

970.00

970.00

OPERATING COSTS

18,000

18

0

18

0

Seminares and awareness building events

Gvt

Lumpsum

4

4,500

18,000

18.00

18.00

GOODS

2,655,000

2,655

0

655

2,000

IT Equipment & Supplies

2,655,000

2,655

0

655

2,000

Workstations / desktops-laptops (300 staff)

Gvt

lumpsum

1

180,000

180,000

180.00

180.00

Data centre equipment- servers, security, airconditioners

Gvt

lumpsum

1

375,000

375,000

375.00

375.00

Heavy Photocopier/ scanners/ printers

Gvt

lumpsum

1

75,000

75,000

75.00

75.00

Software/Office/ Antivirus

Gvt

lumpsum

1

25,000

25,000

25.00

25.00

Cables and LAN and WAN network

Gvt

Lumpsum

1

2,000,000

2,000,000

2,000.00

2,000.00

Activity 1.4: Capacity Building to support implementation of reforms and effective use of new systems (CC executed)

297,000

297

0

297

0

SERVICES

262,500

263

0

263

0

Training

263

0

263

0

Training package on Basic IT skills (courses for 20 staff)

Gvt

lumpsum

100

1,000

100,000

100.00

100.00

Trainings on advanced technical IT skills (25 staff to be trained in specialised skills)

Gvt

lumpsum

25

4,500

112,500

112.50

112.50

Training package on administration of CC- changes in work processes (courses for 20 staff)

Gvt

lumpsum

50

1,000

50,000

50.00

50.00

OPERATING COSTS

34,500

35

0

35

0

Training materials

Gvt

Lumpsum

1

15,000

15,000

15.00

15.00

Publications/ printing/ translation

Gvt

Lumpsum

3

6,500

19,500

19.50

19.50

Activity 1.5: Dissemination to stakeholders, dialogue with private and NGO sector (OECD)

178,000

178

178

0

0

SERVICES

133,000

133

133

0

0

Technical Assitance

133

OECD staff and experts for the delivery of the conferences and implementation of the communication strategy throughout the project

OECD

1

133,000

133,000

133.00

133.00

OPERATING COSTS

45,000

45

45

0

0

Project launch conference (150 participants)

OECD

Lumpsum

1

16,000

16,000

16.00

16.00

Project completion Conference

OECD

lumpsum

1

16,000

16,000

16.00

16.00


OECD

Lumpsum

1

13,000

13,000

13.00

13.00

Component 2: Supporting transparent and participatory law making in the Ministry of Justice

1,151,000

1,151

1,043

108

0

Activity 2.1: Reviewing of Egyptss current law- making practices and proposing new system and proposing a plan for moving towards new system(OECD executed)

70,000

70

70

0

SERVICES

56,000

56

56

0

0


56,000

56

56


OECD

Lumpsum

1

56,000

56,000

56.00

56.00

OPERATING COSTS

14,000.00

14.00

14.00

0.00

0.00

Air ticket round trip, per diem (incl. accomodation) and terminal charges

OECD

Lumpsum

3

2,000

6,000

6.00

6.00

Interpretation, Editing, Translation, Publication, Dissemination

OECD

Lumpsum

1

8,000

8,000

8.00

8.00

Activity 2.2: Capacity building to improve transparent and participatory rule-making (OECD executed)

356,000

356

356

0

0

SERVICES

217,000

217

217

0

0

Training

Training ToT modules developed and delivered by OECD staff

OECD

Lumpsum

1

217,000

217,000

217.00

217.00

OPERATING COSTS

139,000.00

139.00

139.00

0.00

0.00

Training venue, logistics, lunch, coffee (2 days)

OECD

Lumpsum

6

1,400

8,400

8.40

8.40

Kick off conference

OECD

lumpsum

1

4,000

4,000

4.00

4.00

Air Ticket return for trainers

OECD

Lumpsum

17

2,000

34,000

34.00

34.00

Air ticket round trip staff from MoJ, perdiem, terminal charges

OECD

Lumpsum

10

2,500

25,000

25.00

25.00

Interpretation, Editing, Translation, publication, Dissemination

OECD

Lumpsum

1

67,600

67,600

67.60

67.60

Activity 2.3: Implementing processes and tools for effective and transparent rule-making

308,800

309

309

0

0

SERVICES

244,000

244

244

0

0

Technical assitance

244,000

244

244

OECD experts

OECD

Lumpsum

1

244,000

244,000

244.00

244.00

OPERATING COSTS

64,800

65

65

0

0

OECD experts seconded to MoJ

OECD

Lumpsum

2

1,400

2,800

2.80

2.80


OECD

lumpsum

1

28,000

28,000

28.00

28.00

Secondment 4 weeks Paris

OECD

lumpsum

1

14,000

14,000

14.00

14.00

Air ticket round trips for experts

OECD

Lumpsum

10

2,000

20,000

20.00

20.00

Activity 2.4: Implementation support to draft new legislation (OECD)

308,200

308

308

0

0

SERVICES

253,000

253

253

0

0


253,000

253

253


OECD

Lumpsum

1

253,000

253,000

253.00

253.00

OPERATING COSTS

55,200

55

55

0

0

Air ticket round-trip, per diem (incl. accomodation) and terminal charges

OECD

Lumpsum

11

2,000

22,000

22.00

22.00

Workshop venue

OECD

Lumpsum

3

1,400

4,200

4.20

4.20


OECD

lumpsum

1

29,000

29,000

29.00

29.00

Activity 2.5: Portal and database of legislation and best practices in legislationn drafting

108,000

108

0

108

0

SERVICES

72,000

72

0

72

0


72,000

72

72.00

Local consultants to establish database and website to facilitate transparent rule-making (12 months)

Gvt

Pers/Months

24

3,000

72,000

72.00

72.00

OPERATING COSTS

21,000

21

0

21

0

Seminares and awareness building events

Gvt

Lumpsum

3

4,500

13,500

13.50

13.50


Gvt

Lumpsum

1

7,500

7,500

7.50

7.50

GOODS

15,000

15

0

15

0


15,000

15

0

15

0

Software/ hardware for web design

Gvt

Nb

1

15,000

15,000

15.00

15.00

Component 3: Project management and monitoring.

221,800

222

0

222

0

SERVICES

152,000

152

0

152

0

Cabinet for annual Audit of the project

Gvt

Forf/an

3

10,000

30,000

30.00

30.00

Procurement Expert

Gvt

Pers/Months

20

2,500

50,000

50.00

50.00

Administrative and Financing assistant

Gvt

Per/ month

36

2,000

72,000

72.00

72.00

GOODS

21,800

22

0

22

0


21,800

22

0

22

Software for accounting, training, and user manual

Gvt

Lumpsum

1

12,000

12,000

12.00

12.00

Workstations/ desktops. Laptops

Gvt

Nb

4

600

2,400

2.40

2.40

Photocopier/ printer/ scanner

Gvt

lumpsum

1

4,000

4,000

4.00

4.00

Software/ office/ antivirus

Gvt

Nb

4

600

2,400

2.40

2.40

Projectors

Gvt

Nb

2

500

1,000

1.00

1.00

OPERATING COSTS

48,000

48

0

48

0

Others

48,000

48

0

48

0

Steering committee meetings

Gvt

Lumpsum

7

2,500

17,500

17.50

17.50

Papers and office suppliers

Gvt

Lumpsum

3

5,000

15,000

15.00

15.00

Project launching

Gvt

Lumpsum

1

8,000

8,000

8.00

8.00

Others

Gvt

Lumpsum

1

7,500

7,500

7.50

7.50


3,770,000

3,770

1,500

2,270

0

Contingencies 6% (applied on Gvt)

136,000

136

136

0


215,000

215

101

114

0


4,121,000

4,121

1,601

2,520

0.00

0.00

Government Contribution

2,000,000

2,000

2,000

AfDB Grant Contribution

320,000

320

320

Total project costs

6,441,000

6,441

1,601

2,520

320

2,000

ANNEX II - Draft work program and implementation schedule (AfDB)

ANNEX III Procurement Activities (AfDB)

Category of expenditures

Shopping

ICB

QCBS

Selection of Individual consultant

C. Qualification Selection

(CQS)

Total

1. Goods

691.8

1.1 IT equipment for the system of the administrative work flow in the CC

655

655

1.2 IT equipment for MoJ

15

15

1.3 IT equipment for Project Implementation

21.8

21.8

2. Consultant Services:

1,756.5

2.1. Designing an automated case management system for the CC

300

300

2.2. Developing and implementing the applications for an automated case management system & Building capacity of judges, state prosecutors, court officers and front desk officer on using IT solutions for better and faster case management procedures

1,232.5

1,237.5

2.3. Individual Consultant for Technical assistance to support development of intranet and database to ensure knowledge sharing and dissemination of information

72

72

2.4. Recruitment of Procurement Consultant ( Part Time to support both PITs during the major procurements)

50

50

2.5. Recruitment of Administrative and Finance Officer (to be based at CC but working two days a week for MoJ component)

72

72

2.6. Audit (3 years)

30

30

TOTAL

39.3

800

1,532.5

194

30

2448.3

ANNEX IV- Financial Management Assessment

1Financial management

Ministry of Justice and Court of Cassation, both responsible for project execution, use the existing country PFM systems. The existing financial sectors are responsible for the budget execution of the institutional resources. The current financial management systems in place serve to manage and record salary expenses mainly, but cannot provide the relevant project financial reports and statements on timely basis. In fact, up to date, both institutions have not experienced Bank procurement and financial management procedures. Only the ministry of justice actually manages two projects under UN financial system and an expert is hired to prepare financial documents in UN forms. In order to follow up the financial transactions of the project, the ministry of justice and court of cassation, as they prefer to work separately, should assign two financial staff, with relevant accounting educational scales, experience with international organizations and English speaking. The ministry of justice, because of shortage in human resources, may recruit one financial expert who will be paid from MENA trust fund. The court of cassation will assign one financial expert from its existing finance sector or financial experts. The executive agencies will install a computerized accounting system to record and report financial transactions of the project. The quarterly and annual project financial statements will include the sources and uses of funds from all stakeholders in line with the work program and budget. An internal control system will be set up by two institutions and will be followed in managing the resources of the project. The executive agencies will prepare a short operational manual before starting disbursement of funds.

The FM assessment concluded that the proposed project financial management arrangements will satisfy the Banks minimum requirements under the Banks guidelines for the financial management.

2Disbursement

Since the Bank will mainly finance a couple of big consultancy contracts, the direct payment method will be used to disburse funds from MENA trust fund account. The Bank will pay invoices based on submission of relevant forms duly signed by the authorized signatories. The special account method can be used if necessary and special account opens at Egyptian central bank for special expenses that have to be identified.

3External audit

As the public audit agency (CAO), the Egyptian public central auditing organization, has no capacity to audit public agencies or international projects, the annual project financial statements will be audited by independent auditors acceptable to the Bank. The audit will be conducted in line with international standards on auditing (ISA) and Bank ToR (join to the PAR), that will be discuss during negotiations. The audit report, including a management letter, will be submitted to the Bank within six months after the end of fiscal year.

4FM action plan

N

issue

responsible

FM conditions

1

Appointment of project coordinators

EA: Ministry of justice/Court of of Cassation

Disbursement condition

2

Appointment of financial experts or accountants



3

Preparation of operational (procedures) manual

EA: Ministry of justice/Court of Cassation


4

Installation of accounting and reporting computerized systems (software or Excel sheets)

EA: Ministry of justice/Court of Cassation

two month after effectiveness

5

Recruitment of external auditor


4 months after effectiveness

ANNEX V- THE EGYPTIAN COURT SYSTEM [footnoteRef:2] [2: Source: http://www.earla.org/resources.php?id=98 (last visited on 21st March 2014).]

Three-Tiered Judicial Branch

The Egyptian court system includes three tiers: Courts of the First Degree (Mahkmat El Daragah El Aoulah), the Appellate Court (Mahkmat El Estianaf), and the Court of Cassation (Mahkmat El Naqd).

Courts of the First Degree

The Courts of the First Degree are responsible for adjudicating misdemeanors and civil disputes involving financial amounts that do not exceed EG5000 (about US$800). The court consists of one judge. These courts have jurisdiction over commercial, contractual, insurance, intellectual, and real property disputes. The Civil Court of the First Instance does not have jurisdiction over capital crimes.

Courts of Appeal

The Courts of Appeal serve as courts of first instance for capital crimes. There are seven appeals courts[footnoteRef:3] located in the major cities of Egypt. Each court has jurisdiction over the region assigned. Each Court of Appeal consists of three judges: a chief justice and two assistants. Their mission is to review decisions related to misdemeanors and civil matters issued by Courts of the First Degree across the country. The court applies civil and criminal codes modeled primarily on the French Napoleonic Codes; therefore, there is no jury system. The Court of Cassation represents the final stage of criminal appeals. [3: Latest information from the MSAD indicate that there are 8 Appeal Courts.

]

Some circuits within the criminal court have jurisdiction over crimes related to state security. Individuals tried before these circuits do not have the right to appeal the courts decision except on procedural grounds.

Court of Cassation

There is only one Court of Cassation, located in the capital. Established in 1931, it is considered the highest judicial body in the Egyptian court system. It consists of criminal and civil sections. A defendant or plaintiff may access this court only if a breach of law is claimed as the basis for the appeal. The courts main objective is to provide a comprehensive and uniform interpretation of the law. The court issues an annual collection of its decisions, entitled Rulings and Principles of the Court of Cassation.

Courts of Special Jurisdiction

In addition to the three-tiered system described above, the Egyptian judicial branch consists of different types of courts with specialized jurisdiction, including the Supreme Constitutional Court (El Mahkmah El Dostouriah El Aolyah), Family Courts (Mahkmat El Ausrah), Military Courts (El Mahakm El Askariyah), Economic Courts (El Mahkmat El Eqtsadyah), Environmental Courts (El Mahkamt El Beaeyah), and Council of State (Administrative Judicial Court) (Mahkmah Al Qdaa El Edari).

ANNEX VI- THE COURT OF CASSATION STRUCTURE

Figure (1) below depicts the organization structure of the Court of Cassation. The hierarchy of the Court of Cassation organization is sketched according to HE Minister of Justice decree number 2602 issued on 1986 concerning administrative restructuring of the Court of Cassation and Justice Supreme Council.

According to the said decree and the Egyptian constitution, the Court of Cassation is headed by President of the Court of Cassation, who also occupies the position of the President of the Justice Supreme Council the latter which is charged with all the affairs of the judiciary, judges and prosecutors. The President of the Court is assisted by a group of vice presidents, Court Secretary General and Court Secretary General assistant.

Currently, the Court of Cassation is supported with approximately 500 technical judges and an administration staff of about 1500 employees.

The Egyptian Court of Cassation is located inside The High Court Building [HCB] in Cairo downtown. The building was designed in ancient roman style, and hence has a great historical value.

ANNEX VII- EGYPT SELECTED MACROECONOMIC INDICATORS

Activities/ MonthsAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASOND

Prior to start

Submission of MENA TF

Grant Effectivenes

Establishment Project Implementation Team

Preparation of procedures manual

Project Launching mission

Component 1: Supporting the Efficient and the Effective Delivery of Justice

by the CC

Activity 1.1: Preparing a reform action plan for the court of cassation (OECD

executed)

Activity 1.2: Designing an automated case management system for the court

of cassation (Gvt/ CC executed)

Activity 1.3: Implementing automated case management systemfor the court

of cassation (Gvt/CC executed)

Activity 1.4: Capacity Building to support implementation of reforms and

effective use of new systems (Gvt/CC executed)

Activity 1.5: Dissemination to stakeholders, dialogue with private and NGO

sector (OECD)

Component 2: Supporting transparent and participatory law making in the

MoJ

Activity 2.1: Reviewing of Egyptss current law- making practices and

proposing a plan for moving towards new system(OECD executed)

Activity 2.2: Capacity building to improve transparent and participatory rule-

making (OECD executed)

Activity 2.3: Implementing processes and tools for effective and transparent

rule-making (OECD)

Activity 2.4: Implementation support to draft new legislation (OECD)

Activity 2.5: Portal and database of legislation and best practices in

legislationn drafting (Gvt/ MoJ)

Component 3: Project management and monitoring (Gvt/ AfDB)

Launch of Procurement

2015201620172014

Presiding Judge

Secretary General

Assistant

Secretary General

GA for Court President

Affairs

GA for Organizing,

Planning & Info.

General Assembly Dept.

Secretary & Public Relations

Dept.

Secretary Department

Public Relations Department

Security Affairs Dept.

Individuals and Facilities

Documents and Communication

Citizen Services Dept.

Complains Department

Inquiries Department

Egyptian Court of Cassation

Organization Structure

GA for Financial Affairs

GA for Administrative Affairs

Management & Admin Dept.

GA for Civil Cassation

Prosecution

GA for Affairs of Technical

Office

Information Center Dept.

Planning & follow-up Dept.

Accounting Dept.

Inventory Control

Dept.

Budgeting Dept.

Personnel Dept.

Administration

Dept.

Social/Health Dept.

GA for Family & Judge Contest

Family & Judge

Procedures Dept.

Family & Judge

Court Hearing Dept.

GA for Civil Contest

Civil Procedures

Dept.

Civil Court

Hearing Dept.

GA for Criminal Contest

Criminal Procedures

Dept.

Criminal Court

Hearing Dept.

GA for Judicial Claims

Judicial Claims

Dept.

Secretary Dept.

Contest Dept.

GA for Criminal Cassation

Prosecution

Registry &

Acknowledgements

Court Hearing

Secretary Dept.

Legal Principles

Legislative

provisions-releases

Library Dept.

Registry &

Certificates

Archiving Dept.

Revision and Editing

Investigation Dept.

Presiding Judge

Secretary General

Secretary General Assistant

GA for Court President Affairs

GA for Organizing, Planning & Info.

General Assembly Dept.

Secretary & Public Relations Dept.

Secretary Department

Public Relations Department

Security Affairs Dept.

Individuals and Facilities

Documents and Communication

Citizen Services Dept.

Complains Department

Inquiries Department

Management & Admin Dept.

Egyptian Court of CassationOrganization Structure

GA for Financial Affairs

Library Dept.

GA for Administrative Affairs

Registry & Certificates

Archiving Dept.

Planning & follow-up Dept.

Accounting Dept.

Information Center Dept.

Inventory Control Dept.

GA for Civil Cassation Prosecution

GA for Affairs of Technical Office

Secretary Dept.

Budgeting Dept.

Personnel Dept.

Administration Dept.

Social/Health Dept.

GA for Family & Judge Contest

Family & Judge Procedures Dept.

Family & Judge Court Hearing Dept.

GA for Civil Contest

Civil Procedures Dept.

Civil CourtHearing Dept.

GA for Criminal Contest

Criminal Procedures Dept.

Criminal Court Hearing Dept.

GA for Judicial Claims

Judicial Claims Dept.

Contest Dept.

GA for Criminal Cassation Prosecution

Registry & Acknowledgements

Court Hearing

Secretary Dept.

Legal Principles

Legislative provisions- releases

Revision and Editing

Investigation Dept.

IndicatorsUnit2000200820092010201120122013 (e)

National Accounts

GNI at Current Prices

Million US $

97,414147,248172,187196,313214,596......

GNI per Capita

US$

1,4401,8802,1602,4202,600......

GDP at Current Prices

Million US $

99,155164,644187,662220,764230,629253,905270,953

GDP at 2000 Constant prices

Million US $

99,155145,916153,066160,413163,301166,931170,307

Real GDP Growth Rate

%

4.17.34.94.81.82.22.0

Real per Capita GDP Growth Rate

%

2.35.43.13.00.10.50.3

Gross Domestic Investment

% GDP

19.322.419.221.917.115.815.8

Public Investment

% GDP

10.17.39.69.511.59.49.3

Private Investment

% GDP

9.315.09.612.45.66.46.5

Gross National Savings

% GDP

18.422.916.817.514.513.814.1

Prices and Money

Inflation (CPI)

%

2.811.716.211.711.18.710.6

Exchange Rate (Annual Average)

local currency/US$

3.55.45.55.65.96.0...

Monetary Growth (M2)

%

7.411.09.412.36.2......

Money and Quasi Money as % of GDP

%

73.085.680.575.772.9......

Government Finance

Total Revenue and Grants

% GDP

21.924.727.121.618.918.618.2

Total Expenditure and Net Lending

% GDP

25.731.533.729.428.629.429.7

Overall Deficit (-) / Surplus (+)

% GDP

-3.8-6.8-6.6-7.9-9.7-10.8-11.4

External Sector

Exports Volume Growth (Goods)

%

15.78.4-1.9-10.3-3.7-6.73.7

Imports Volume Growth (Goods)

%

-3.220.11.7-2.4-3.32.73.2

Terms of Trade Growth

%

14.57.3-6.86.02.828.65.4

Current Account Balance

Million US $

-1,163901-4,404-4,361-5,958-7,877-7,969

Current Account Balance

% GDP

-1.20.5-2.3-2.0-2.6-3.1-2.9

External Reserves

months of imports

7.06.26.57.12.92.1...

Debt and Financial Flows

Debt Service

% exports

22.98.412.09.711.611.412.3

External Debt

% GDP

28.021.116.815.315.113.816.7

Net Total Financial Flows

Million US $

3,26617,3227,2696,4124,148......

Net Official Development Assistance

Million US $

1,3711,741999592410......

Net Foreign Direct Investment

Million US $

1,2359,4956,7126,386-483......

Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2012 and International Financial Statistics, October 2012;

AfDB Statistics Department: Development Data Portal Database, March 2013. United Nations: OECD, Reporting System Division.

Notes: Data Not Available

( e ) EstimationsLast Update: May 2013

0.01.02.03.04.05.06.07.08.0

20002001200220032004200520062007200820092010201120122013

%

Real GDP Growth Rate, 2000-2013024681012141618

20002001200220032004200520062007200820092010201120122013

Inflation (CPI), 2000-2013-4.0-3.0-2.0-1.00.01.02.03.04.05.0

2,0002,0012,0022,0032,0042,0052,0062,0072,0082,0092,0102,0112,0122,013

Current Account Balance as % of GDP,2000-2013