Document of
                      The World Bank


                                                     Report No:
                                                                  65015 v1


                   RESTRUCTURING PAPER

                           ON A

              PROPOSED PROJECT RESTRUCTURING
                            OF
LEGAL AND JUDICIAL IMPLEMENTATION AND INSTITUTIONAL SUPPORT
                          PROJECT
                         IBRD-48230
               BOARD APPROVAL DATE: 06/01/2006


                          TO THE

          FORMER YUGOSLAV REPUBLIC OF MACEDONIA


                     OCTOBER 17th, 2011
                ABBREVIATIONS AND ACRONYMS




ACCMIS        Automated Court Case Management and Information System
EUR           Euro
FYR           Former Yugoslav Republic
IBRD          International Bank for Reconstruction and Development
ISR           Implementation Status and Results Report
IT            Information Technology
LJIIS         Legal and Judicial Implementation and Institutional Support




         Regional Vice President:       Philippe Le Houérou
               Country Director:        Jane Armitage
                 Sector Director:       Yvonne Tsikata
                 Sector Manager         William L. Dorotinsky
              Task Team Leader:         Klaus Decker
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          MACEDONIA, FORMER YUGOSLAV REPUBLIC OF
  LEGAL AND JUDICIAL IMPLEMENTATION AND INSTITUTIONAL SUPPORT
                            PROJECT
                             P089859
                           CONTENTS

                                                                                                  Page
REALLOCATION OF PROCEEDS............................................................................... 4




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         MACEDONIA, FORMER YUGOSLAV REPUBLIC OF
 LEGAL AND JUDICIAL IMPLEMENTATION AND INSTITUTIONAL SUPPORT
                           PROJECT
                            P089859
                          IBRD-48230
                                Restructuring Paper

1. Proceeds for Former Yugoslav Republic of Macedonia Legal and Judicial
   Implementation and Institutional Support Project, IBRD-48230, P089859 will be
   reallocated as follows:

 Category of Expenditure         Allocation (in EUR)             % of Financing
   Current      Revised         Current        Revised        Current      Revise
(1) Goods,    No Change         9,605,000      9,867,487       100%       No Change
Works,
Consultants’
Services,
Training and
Operating
Costs
(2) Goods,    No Change           370,000        107,513      100%         No Change
Works,
Consultants’
Services and
Training
under Part
III.A.3 of
the Project
(3) Front-    No Change            25,000    No Change       Amount
end Fee                                                      payable
                                                           pursuant to
                                                           Section 2.04
                                                              of this
                                                            Agreement
                                                                in
                                                           accordance
                                                           with Section
                                                            2.07 (b) of
                                                           the General
                                                            Conditions
Total                          10,000,000     No Change
Amount


2.      The development objective of the LJIIS Project is to “contribute to improving
judicial efficiency and effectiveness and the business climate in FYR Macedonia by: (i)
enhancing ministerial and judicial capacity to systemically implement the Government’s
Judicial Reform Strategy and key laws; and (ii) improving judicial infrastructure.�

3.     The Project is on track. The current ISR rates the progress towards achievement
of the Project Development Objective as satisfactory and the overall implementation
progress as moderately satisfactory. Significant progress has been made in rehabilitating
a number of courts – all eleven courthouse renovations have been completed and
equipped with new furniture. The only remaining construction activity, the new Criminal
Court building in Skopje, is ongoing and will be completed before the Project closing
date. LJIIS Project support for enhancing IT systems in the courts is also near
completion, with the Automated Court Case Management and Information System
(ACCMIS) installed and functioning in all courts in the country. Progress has been made
in raising the quality of bankruptcy trustees and implementation of the revised
Bankruptcy Law, with all trustees licensed and a complaints procedure in place.
Technical assistance to the State Administrative Inspectorate was completed ahead of
schedule. Capacity development activities with the Judicial Council have lagged in
implementation of its program for the evaluation, promotion and disciplining of judges,
but a program to be completed by the closing date of the Project has been agreed,
including study tours to Judicial Councils in neighboring countries.

4.     The proposed reallocation is necessary to finance:

(i) IT equipment for the new High Administrative Court in Skopje. The court is fully
equipped with office furniture and with the ACCMIS funded by the LJIIS Project, but
still requires suitable IT equipment (computers, printers, a server, a rack, an operating
system and licenses for the server and computers, virus protection and a workstation for
the server management) to become fully functional.

(ii) (a) hardware for the State Administrative Inspectorate and Ministry of Justice, (b) a
survey on judicial efficiency, including an indicator measuring the impact of the LJIIS
Project, and (c) other expenditures related to the 8-month closing date extension period
(operating costs and consulting services in the PIU, project audit).




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