Second Judicial Reforms Project Implementation Unit
A.PROJECT DESCRIPTION
1. Lending instrument
The Second Judicial Reform Project will be financed by a Specific Investment Credit in the amount of SDR xx million (US$ 22.5 million equivalent) with project implementation over a five (5) year period. JRP2 has been classified as a repeater project. The overall cost of the Project is estimated at US$32.69 million, with an Armenian Government contribution of US$7.19 million and a Japan Policy and Human Resources Development Fund Co-Finance Grant of US$3 million to be used to partially finance project technical assistance and training needs. The availability of additional trust fund co-financing from the Dutch Government has been discussed but cannot be finalized until after Executive Board consideration.
2. Project development objective and key indicators
The primary development objectives of JRP2 are to: (1) provide Armenia’s judiciary with the administration, facilities and expanded capacity necessary to improve the efficiency, reliability and transparency of judicial operations and services; and (2) continue to improve public awareness of judicial services and access to legal and judicial information. JRP2 will support the Armenian judiciary in implementing a second stage of judicial reforms launched by passage of Constitutional amendments and the introduction of a new Judicial Code.
Achievement of the Project Development Objectives will be measured by performance indicators, including Government and judicial operational statistics supplemented by: (i) measures of court performance and user perceptions (BEEPS); (ii) expert assessments of judicial qualifications and training (American Bar Association’s CEELI Judicial Reform Index); and (iii) project funded monitoring and evaluation efforts (court users survey and NGO court monitoring).
This component aims to build the capacity of new or reformed institutions under the amended Constitution and the proposed Judicial Code.
Subcomponent A – Building Capacity of Council of Justice [Total Cost= $225,000: IDA= $50,000; Armenia Co-Finance= $48,000; PHRD=$128,000]
Under the amended Constitution, judicial independence will be strengthened through the reorganization of the Council of Justice (CoJ). The CoJ will be composed of a majority of judges plus two legal specialists appointed by the National Assembly and two by the President. The CoJ will be responsible for developing a list of judicial candidates (appointed by the President), evaluating judges for career advancement, nominating court chairmen, and disciplining judges. The reformed CoJ was formed following passage of implementing legislation in July 2006. The CoJ staff will be a part of the central Judicial Department. JRP2 will provide the CoJ and its staff with technical assistance and training in order to:
• Design operating procedures and prepare rules and processes for CoJ operations; • Design and implement transparent procedures for the development of judicial candidate and promotion lists; • Develop standard judicial evaluation criteria and processes; and • Implement transparent rules and procedures that provide due process for the disciplining of judges.
Goods and furniture necessary for the operation of the CoJ and its staff will be provided as part of the JRP2 assistance to the Judicial Department under Component 2, and IT hardware and software will be provided under Subcomponent 1C, both described below.
Subcomponent B – Building an Effective Judicial Department [Total Cost= $940,000: IDA= $279,000; Armenia Co-finance= $207,000; PHRD= $455,000]
On July 7, 2006, the Law on the Judicial Service was adopted, collecting all the staff of Armenia’s courts into a formal “judicial service” to parallel the executive branch civil service. The judicial service is led by a centrally organized administrative staff that forms a Judicial Department located in Yerevan. The Judicial Service Law was passed prior to the adoption of the Judicial Code to fill a gap in the administration of the court system through the rapid creation of the Department and recruitment of additional staff. Existing and new judicial staff, as well as judges, have been undergoing initial training and orientation on the Judicial Service Law at the Judicial Training Center. The Judicial Department will be housed in a new building financed by JRP2 resources and co-located with the new Cassation Court (see Component 2 below). The Judicial Department provides administrative support to all judicial governance bodies, including the Council of Justice, General Council of Judges, Council of Courts’ Chairmen and the Chairman of the Cassation Court. While the judicial staff located in the courts will continue with their responsibilities and work, they now will report to the central Judicial Department.
As a new institution with new staff and broad responsibilities, the Judicial Department will need to build capacity as quickly as possible. Therefore, under this subcomponent JRP2 will provide the Judicial Department with consulting services and training to allow it to implement the following responsibilities:
• Budget, financial management and auditing; • Collection and analysis of statistical data and development of performance indicators; • Human resource management; • Management of judicial facilities and infrastructure; • Maintenance and strategic use of IT systems; and • Other general administrative matters agreed with the Chief Justice and Head of the Judicial Department.
JRP2 funding will also support the creation of a new judicial security service through the provision of technical assistance and consulting services to help organize the service and develop standards and procedures for its safe and effective operation. Training will also be provided to judicial service officers. JRP2 funds will not provide goods to the judicial security service except for furniture (provided as part of Component 2) and IT hardware and systems (provided under Subcomponent 1C). In addition, under this subcomponent JRP2 financing will fund a review of Armenia’s judicial archive policy and procedures, develop a list of recommendations for modernizing the archival process, and purchase equipment and software agreed with the Judicial Department based on the needs assessment. JRP2 funds will not be used for the rehabilitation of an archive building.
Subcomponent C – Expanding Judicial Automation and Developing Judicial Database [Total Cost= $ 3.5 million: IDA=$2.3 million; Armenian Co-financing= $770,000; PHRD=$420,000]
Under JRP1, case management software, the Court Automation and Skills Transfer (CAST) system, was developed and piloted in seven of the rehabilitated courthouses. JRP2 funding will be used to roll out the CAST system to as many of the courthouses that are rehabilitated or constructed under JRP2 as possible, including those courthouses reconstructed using judicial budget funds (see Component 2 below). JRP2 funding will allow for the scaling up of the benefits of increased transparency in courtroom proceedings and accuracy in court records that were found by the introduction of digital court recording systems under JRP1. With the passage of the Constitutional amendments and the proposed Judicial Code, the Judicial Department and the Constitutional Court will need new or upgraded IT systems and equipment in order to fulfill their new and expanded roles. Specifically this subcomponent will provide financing to:
• Purchase hardware necessary to run the CAST system, including workstations, servers, monitors, printers and LANs in for new or rehabilitated courthouses; • Provide technical assistance and training necessary to support the roll out as well as train judges and judicial servants on the use of the CAST system; • Purchase court recording systems for renovated or newly constructed courthouses; • Provide IT hardware and equipment for the effective functioning of the Judicial Department; and • Upgrade and expand the Constitutional Court’s and parts of the Ministry of Justice’s IT systems.
In addition to expanding the judicial automation begun under JRP1, JRP2 will provide support for the implementation of the use of precedent provided for in the Constitutional amendments and the proposed Judicial Code. Precedent is the legal principle of using a decision in a prior case decided by a higher court to help determine the outcome in a present case. To work effectively in Armenia, judges must have access to prior decisions handed down from the Appeals Courts, Cassation Court and First Instance Courts through the creation of a judicial database and a system to access this database through the development of a judicial portal. The Judicial Department has begun the initial development of the judicial database and portal (separate from the CAST system) through its own budget and possible funding from UNDP. JRP2 will build on this initial work by providing funding for:
• Technical assistance and consulting services to further develop and implement a database of judicial decisions, orders and rules; • Technical assistance for the integration of the judicial database and portal with CAST, including the provision of public access to parts of the database; and • Training for the use and maintenance of the judicial database and portal.
Component 2 – COURTHOUSE REHABILITATION: EXPANDING TO THE REGIONS AND NEW CASSATION COURT COMPLEX [Project cost= $20.95 million: IDA= $15.89 million; Armenia Co-finance=$4.61 million; PHRD= $450,000; Armenia Judicial Budget=$3.9million (2007-09) ]
JRP1 began the process of rebuilding, rehabilitating and upgrading Armenia’s court infrastructure. Focusing on the largest Armenian courts, those in Yerevan and a few in the regions, JRP1 successfully completed 12 courthouse buildings housing 14 courts. Many of the remaining regional first instance court buildings are in poor condition, lack sufficient space and security and sometimes share space unfavorably with police, prosecutorial and other functions. While improvements have been made in the Cassation Court building to address the most egregious problems (leaking roof, no security system), the existing building and location are not sufficient to meet the needs of a modern cassation court and the new administrative staff of the Judicial Department. Therefore, additional funding is needed to complete the rehabilitation of Armenia’s remaining courts (primarily in the regions) and construct a new Cassation Court complex in central Yerevan that will house both the Cassation Court and the new Judicial Department. In addition to JRP2 funds, the Armenian Government has agreed to provide the judiciary with approximately US$3.9 million over three years (from 2007-09) for the reconstruction of 10 regional first instance courthouses.
JRP2-funded rehabilitation also will allow the judiciary to implement its plan of expanding its capacity to respond to a rapidly rising demand for judicial services. Between 1999 and 2005, the civil caseload in Armenia’s first instance courts grew 300% (from 37,000 to 104,018) while the number of judges grew only 20%. As a result, the judiciary and Ministry of Justice have agreed on a revised “judicial map” based on an analysis of caseloads, number of judges and projected growth in caseload across the country. The new judicial map increases the number of judges and size of all first instance courts and creates a number of specialized judicial positions located in existing courts (one in the north and three in the south of the country) to hear more complex civil and criminal cases. Implementation of this reorganization will take place upon passage of the proposed Judicial Code. The Chief Justice and Ministry of Justice have agreed on a set of priorities for the phased reconstruction and new construction funded by JRP2 and by the judicial budget, based on court location, condition of existing building, and ease of administration and implementation (See Annex 4 for details).
Based on this prioritization, JRP2 funding under this component will support: • Construction of a new building or buildings in central Yerevan to house the Cassation Court and new Judicial Department; • Construction or reconstruction of regional first instance courthouses to accommodate expected growth in the number of judges and caseload based on the agreed priority list and available project funds; • Updating and elaboration of space planning and design standards in accordance with best international practice; • Technical assistance for the design and supervision of all construction works; and • Furniture, equipment and other goods (excluding IT systems) for courts, courtrooms, judges, judicial servants and public areas.
Uniform space planning and design standards for court facilities were initiated under JRP1. These standards will be elaborated and updated and will guide reconstruction and new construction under JRP2. A design competition for the Cassation Court complex has begun using judicial budget funds. To ensure consistency across all the court rehabilitation activities and cost effectiveness, the development and review of design terms of reference will be managed by the JRPIU in the Ministry of Justice for both JRP2-funded and judicial-funded buildings. JRP2 costs have been estimated based on JRP1 experience, current input costs, and Government expectations of the dram-dollar exchange rate. Reconstruction and new construction costs continue to rise in Armenia. The cost of JRP2 civil works have been estimated cautiously in light of these trends. Given the level of IDA credit available, the project will undertake to complete all courts in phase 1 and 2 of the agreed priority list. (See Annex 4). Work on courts in phase 3 of the priority list will be undertaken provided sufficient project funds are available. The final amount of square meters or number of courthouses rehabilitated or reconstructed could be less than anticipated should unforeseen increases in construction costs or negative exchange rate movements emerge.
Component 3 – JUDICIAL TRAINING SCHOOL [Project cost= $3.12M]
Under the proposed Judicial Code, the existing Judicial Training Center will become a formal Judicial Training School (JTS), providing mandatory training for judicial candidates (following an entrance examination) and continuing education for judges and judicial servants. The development of a permanent, judicial school has faced a number of obstacles. Initial EU funding to establish the school was cancelled and funding from the Government and judicial budgets was limited and insufficient to create a permanent curricula and training staff. Assistance under JRP1 (limited to $0.5 million) was originally designed to supplement the expected EU funding, and was used to finance the development of the JTS legislative framework and a detailed action plan to operationalize the new school. JRP1 also created a temporary training center with a computer lab in one of the recently renovated courthouses. JRP2 funds will be used to scale up these initiatives by supporting a permanent home for the JTS and collaborating with planned EU assistance to develop training curricula to meet the judiciary’s full training needs.
Subcomponent A – Permanent Judicial Training School Facility [Total cost= $2.78 million: IDA= $2.05 million; Armenian Co-finance= $612,000; PHRD= $114,000]
The Chief Justice has identified a building formerly used by a Ministry of Education technical school that can be renovated for JTS use. Ownership will be transferred to the judiciary. The building is large enough to house both the JTS and a training center for Justice Ministry staff, including officials from the Enforcement Service Department, a JRP2 beneficiary (see Component 4 below). JRP2 funds under this subcomponent will support:
• Renovation and reconstruction of a building to house the JTS and MoJ training center; • Design and supervision of the renovation and reconstruction of new building; and • Furniture, IT hardware and other equipment necessary for the school to function.
Subcomponent B – Development of Training Curricula [Total cost= $342,000: IDA= $31,000; Armenian Co-finance= $75,000; PHRD= $236,000]
The European Commission has approved a proposal for funding the development of JTS’s general training curriculum, business plan and a program to develop JTS trainers. Initial curricula development will be funded through the use of JRP2’s Project Preparation Facility (PPF) and will be closely coordinated with EC assistance once this comes on line. In coordination with the EC program, JRP2 funds will provide assistance for the development of specific training courses and materials for judges. Based on the outcomes of JRP2 assistance to the Judicial Department, JRP2 funding could also be used for the design and implementation of specific judicial servant training courses. More specifically, JRP2 funds under this subcomponent will provide consulting services to support:
• Development of training courses and materials for judges on the use of precedent in deciding cases and drafting judicial opinions; and • Development of training courses and training materials for judges and judicial staff on the use of judicial IT systems and administrative matters (e.g., financial management, judicial budgeting, etc.).
Component 4 – IMPROVING ENFORCEMENT OF JUDICIAL DECISIONS [Project cost= $1.1 million: IDA= $460,000; Armenian Co-finance= $240,000; PHRD= $400,000]
The Enforcement Service Department (ESD) is the unit of the MoJ charged with enforcing final judicial decisions. Under JRP1, ESD was provided with consulting advice, technical assistance and goods necessary to develop and pilot the Automated Enforcement Service Management System (AESMS) in three ESD offices. ESD staff and management also received training and participated in study tours to observe how IT solutions were integrated into other pubic enforcement offices. ESD operations have shown some improvement during the life of JRP1. Among Armenian firms surveyed by the World Bank-EBRD Business Environment and Enterprise Performance Survey that judged the courts in Armenia to be able to enforce decisions rose from 34 to 42 percent between 2002 and 2005. While the Department’s own statistics show a steady increase in cases handled and cases fully completed from 1999 to 2004, they show a drop off in these figures for 2005 and a building backlog of unprocessed cases. As a result, JRP2 funds will build on the initial success from JRP1 to continue to improve the effectiveness and efficiency of the MoJ’s Enforcement Service Department (ESD). Under this component, JRP2 will provide goods, consulting services and training to support:
• Purchase of IT systems necessary for the full rollout of the AESMS software; • Software enhancement for AESMS improvements based on the results of the pilot and as needed to integrate with an existing electronic auction system; • IT management assistance for the IT unit that will maintain and service AESMS during and following the rollout; and • Training for enforcement staff on AESMS and other issues and development of training materials.
In addition, the Justice Minister has requested that JRP2 support a feasibility study to examine the possibility for introducing private enforcement agents or private bailiffs into Armenia. Such private enforcement agents have begun to operate in a number of West and Central European countries (e.g., The Netherlands and FYR Macedonia). The feasibility study will identify issues involved in starting a private bailiff system, assess the need for such a system in Armenia, and make recommendations for the piloting of private bailiffs in Armenia. Pending the outcome and review of the study by the Government and judiciary, JRP2 funds could also be used to develop a limited pilot program for private bailiffs for selected cases and/or in selected parts of Armenia.
Armenia lacks a functional and effective system for arbitration and mediation. Under existing law, a few “mediation courts” (actually providing arbitral services) are operating, sponsored by individual organizations such as the Young Lawyers Association. However, commercial enterprises and individuals do not have an effective formal alternative to the court system to resolve disputes. A new Arbitration Law was recently enacted and USAID’s commercial law reform project is providing some assistance with training local arbitrators. However, the Armenian Government believes that the establishment of an internationally recognized arbitration system requires arbitrators with international standing.
JRP2 funding, in coordination with these ongoing efforts, will provide technical assistance to support:
• Drafting assistance to develop a comprehensive legislative and regulatory framework supporting arbitration based on implementation of new and existing legislation; and • International arbitration training and accreditation for competitively selected candidates conditioned on agreement to provide arbitral services and training in Armenia.
Component 6 – EXPANDING ACCESS TO LEGAL INFORMATION AND PUBLIC AWARENESS [Project cost= $1.23M]
This component will expand and broaden access to legal information through the Armenian Legal Information System (ARLIS) developed under JRP1. It will also build on the success of raising public awareness of legal rights and the role of the judicial system through the “My Rights” television program funded by JRP1. In addition, JRP2 will more directly involve NGOs and civil society in monitoring and evaluating JRP2 indicators and outcomes and implementation of Armenia’s overall judicial reform program.
Subcomponent A – Expanding and Enhancing ARLIS [Total Cost= $410,000: IDA= $256,000; Armenian co-finance= $90,000; PHRD= $64,000]
Through ARLIS, Armenians have free Internet-based access to a database of Armenian legislation and Government decisions. The Official Bulletin, a Government-owned company manages and updates ARLIS which is also available on CD-Rom through a small subscription fee. The database now contains laws from 1994 through 2006 and is rapidly expanding in coverage (back to 1948) and use (page views increased by 76% from January to November 2006). Additional assistance is needed to help the Official Bulletin more quickly and efficiently incorporate the growing volume of material for the database and expand public access to the database. Therefore, under this subcomponent JRP2 funding will support the expansion of ARLIS through the following activities:
• Enhancement of ARLIS software based on a review of present functionality and “back-office” processing in the Official Bulletin; • Provision of additional IT hardware needed to support ARLIS’s expanding content and increased usage; and • Supplying dedicated ARLIS terminals or kiosks for public access, placed in courts, state agencies with high public access (e.g., district government and mayor’s offices, cadastre, notary, etc.), and regional or community centers.
Subcomponent B – Improving Judicial Information Services [Total Cost= $300,000: IDA= $7,000; Armenian co-finance= $66,000; PHRD= $227,000]
One objective Armenia’s judicial leadership has for the second phase of reform is to improve the delivery of judicial services to the public. First and foremost, this improvement will require improved service standards and actions by the court chancelleries – the first place in each court that the public goes to file papers, get information on court proceedings and ask for general legal help. Under JRP1 and JRP2 Component 2, physical improvements will be made to the chancellery office and public space in each new or rehabilitated courthouse. JRP2 will provide technical assistance to improve the service orientation of chancellery staff. With the introduction of the principle of precedent in Armenia, lawyers, judges and the public also require authoritative descriptions and interpretations of key laws and court decisions. Therefore, under this subcomponent JRP2 will support:
• Training for chancellery staff to improve service standards and raise general legal knowledge; • Production of public information bulletins and pamphlets on specific legal issues (i.e., gender rights, criminal rights) and expanding access to legal information in courts; • Enhancing relations and improving communication between judges and Judicial Department staff and the media; and • Drafting expert commentary on key Armenian laws, court decisions and other important legal issues for use by judges, lawyers and the public.
Subcomponent C – Public Awareness and Monitoring Judicial Reforms [Total cost= $520,000: IDA= $197,000; Armenian co-finance= $114,000; PHRD= $209,000]
As the number one rated television show in Armenia, “My Rights”, developed and produced with JRP1 funds, successfully raised public awareness of court operations and the enforcement of specific legal rights under Armenian law. Armenia’s public television station has produced a limited number of additional shows for a third season. However, the interest generated by the show remains (over 3000 requests for information by mail, phone and email during the first two seasons). In response, JRP2 assistance will be used to expand and broaden the use of television to provide information on the progress and impact of judicial reforms and provide real-life examples of judicial enforcement of legal rights. In particular, future productions could move beyond the civil case examples of “My Rights” to include family, gender rights and criminal law issues.
The judiciary and MoJ staff could also become proactive in disseminating information, performance assessments and judicial statistics to explain and promote ongoing legal and judicial reform efforts. JRP2 will support these efforts by funding periodic media and donor briefings, information campaigns and targeted training seminars (for lawyers and law students) designed to raise public awareness of reforms and improvements in Armenia’s judicial and court performance and improve reform implementation.
A key lesson learned from JRP1 is the need to develop better monitoring and evaluation methodologies for future judicial reform projects (discussed below). Involving NGOs and civil society organizations in the implementation and monitoring of JRP2 will serve two purposes. First, it will broaden the groups in society with information on and a stake in the effective implementation of JRP2-supported reforms. Second, it will provide an outside “check” or review of implementation actions taken by the judiciary and MoJ beneficiaries of JRP2. Specifically, under this subcomponent, JRP2 funding will support:
• Broad, periodic public and court user surveys to monitor perceptions of the judicial reform efforts and JRP2 implementation; and • Court monitoring activities by organizations such as Yerevan State University Law Faculty, the Armenia Young Lawyers Association or others to assess the impact of automation, training, and technical assistance for judicial services as well as monitoring judicial performance and court efficiency.
