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Document of
The World Bank
Report No: 20820-AM
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 8.6 MILLION
(US$ 11. 4 MILLION EQUIVALENT)
TO THE
REPUBLIC OF ARMENIA
FOR A
JUDICIAL REFORM PROJECT
August 21, 2000
Legal DepartmentEurope and Central Asia Region
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CURRENCY EQUIVALENTS
(Exchange Rate Effective August 21, 2000)
Currency Unit = DramDram 1.0 = US$ 0.002US$ 1.00 = 547 Drams
FISCAL YEARJanuary 1 - December 31
ABBREVIATIONS AND ACRONYMS
ABA- CEELI American Bar Association's Central and Eastern European Law InstituteCAS Country Assistance StrategyCCC Council of Court ChairmenEU-TACIS European Union - Technical Assistance Program for the Commonwealth of
the Independent StatesECU European Currency UnitFMS Financial Management SystemFSU Former Soviet UnionIDA International Development AssociationJTC Judicial Training CenterGOA Government of Armenia.GTZ Gesellschaft fur Technische ZusammenarbeitMOJ Ministry of JusticePAC Project Administration CouncilPIU Project Implementation UnitPMR Project Management ReportPOM Project Operational ManualSA Special AccountSATAC I Structural Adjustment Technical Assistance CreditSATAC II Second Structural Adjustment Technical Assistance CreditSDR Special Drawing RightsSOE Statements of ExpendituresUSAID United States Agency for International DevelopmentWTO World Trade OrganizationYSU Yerevan State University
Vice President: Johannes F. LinnCountry Director: Judy O'Connor
Sector Manager: Friedrich PeloschekTask Team Leader: Irina L. Kichigina
ARMENIAJUDICIAL REFORM PROJECT
CONTENTS
A. Project Development Objective Page
1. Project development objective 22. Key performance indicators 2
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 22. Main sector issues and Government strategy 33. Sector issues to be addressed by the project and strategic choices 11
C. Project Description Summary
1. Project components 152. Key policy and institutional reforms supported by the project 163. Benefits and target population 174. Institutional and implementation arrangements 17
D. Project Rationale
1. Project alternatives considered and reasons for rejection 192. Major related projects financed by the Bank and other development agencies 203. Lessons learned and reflected in proposed project design 214. Indications of borrower commitment and ownership 235. Value added of Bank support in this project 24
E. Summary Project Analysis
1. Economic 242. Financial 243. Technical 244. Institutional 255. Environmental 266. Social 277. Safeguard Policies 28
F. Sustainability and Risks
1. Sustainability 282. Critical risks 283. Possible controversial aspects 29
G. Main Credit Conditions
1. Effectiveness Condition 302. Other 30
H. Readiness for Implementation 31
I. Compliance with Bank Policies 31
Annexes
Annex 1: Project Design Summary 32Annex 2: Project Description 37Annex 3: Estimated Project Costs 46Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 47Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 48Annex 6: Procurement and Disbursement Arrangements 49Annex 7: Project Processing Schedule 65Annex 8: Documents in the Project File 66Annex 9: Statement of Loans and Credits 67Annex 10: Country at a Glance 69
MAP(S)IBRD No. 29596
ARMENIA
Judicial Reform Project
Project Appraisal Document
Europe and Central Asia RegionLegal Department
Date: August 21, 2000 Team Leader: Irna L. KichiginaCountry Manager/Director: Judy M. O'Connor Sector Manager/Director: Friedrich PeloschekProject ID: P057838 Sector(s): BY - Other Public Sector ManagementLending Instrument: Specific Investment Loan (SIL) Theme(s):
Poverty Targeted Intervention: N
Project Financing DataO Loan N Credit [I Grant D Guarantee O] Other (Specify)
For LoanslCreditslOthers:Amount (US$m): SDR 8.6 million / US$11.4 million equivalent
Proposed Terms: Standard CreditGrace period (years): 10 Years to maturity: 40Commitment fee: 0.50% Service charge: 0.75%
_Financing Plan: Source LOC, Foreign TotalGOVERNMENT 0.80 0.00 0.80IDA 0.00 11.40 11.40
Total: 0.80 11.40 12.20
Borrower: REPUBLIC OF ARMENIAResponsible agency: MINISTRY OF JUSTICE AND COUNCIL OF COURT CHAIRMENMinistry of JusticeAddress: 8, Khorhrdarani Str., Yerevan, 375010, Republic of ArmeniaContact Person: Mr. David Harutyunian, Minister
Other Agency(ies):Council of Court Chairmen
Address: 6, Khorhrdarani Str., Yerevan, 375010, Republic of ArmeniaContact Person: Mr. Henrik DanielianTel: (374-2) 58-20-93 Fax: (374-2) 582-093 Email:Estimated disbursements ( Bank FY/US$M):
fY | 2001 2002 2003 22.4 7005Annual 0.5 2.3 2.5 3.4 2.7
Cumulative 0.5 2.8 5.3 8.7 11.4
Project implementation period: 2000-2004Expected effectiveness date: 10/30/2000 Expected closing date: 12/31/2004C0S PAD %n P, .M20, 2000
A. Project Development Objective
1. Project development objective: (see Annex 1)
The development objective of the proposed project is to assist in the development of an independent,accessible and efficient judiciary in the Republic of Armenia, which is essential to govemance, rule of law,and investment climate.
More specifically, the project aims at:
(i) strengthening judicial self-governance through support to the Council of Court Chairmen (CCC);(ii) improvement of court administration and case management procedures;(iii) development of a comprehensive institutional base for continuing education for judges and court
personnel;(iv) strengthening the service for enforcement of court decisions;(v) development of a comprehensive legal information system accessible to judges, legal professionals,
business community and citizens; and(vi) promotion of public awareness of laws and legal institutions.
Progress towards these objectives would be monitored using the following set of indicators:
(i) development within the CCC of the capacity to manage efficiently and effectively the first-instanceand appellate courts (i.e. effective governance of the judiciary by the CCC);
(ii) adoption of new court administration and case management procedures by courts;(iii) development of new professionals within the court system including court administrators, judicial
assistants and financial officers;(iv) more consolidated and rationalized court structure (judges and other scarce judicial resources are
allocated appropriately; staffing levels are determined to allow the courts to discharge their assignedfunctions);
(v) a well-functioning Judicial Training Center (JTC) resulting in better trained and more competentjudicial system professionals;
(vi) improved court decisions enforcement mechanism;(vii) improved access by judges, legal professionals, business community and general public to more
reliable, comprehensive and up-to-date legal information; and(viii) establishment of a comprehensive public education program to overcome the widespread distrust and
suspicion of the judiciary.
2. Key performance indicators: (see Annex 1)
B. Strategic Context1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex I)Document number: 16988-AM Date of latest CAS discussion: August 26, 1997
The objectives of the Bank Group's country assistance strategy for Armenia are to: (i) foster the rapiddevelopment of the private sector by promoting further structural reforms, strengthening the financialsystem and the legal and regulatory framework, and alleviating key infrastructure bottlenecks in energy,transport and water; and (ii) support social sustainability and the alleviation of poverty through the
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strengthening of the social safety net, and through improvements in the quality of and access to basic healthand education services. A legal framework supporting a market-based economy includes laws, statutes, and
regulations that consistently protect the sanctity of property and contracts and the rights and obligations
associated with them. Equally critical is a properly functioning judiciary capable of resolving disputes in a
timely, impartial and reliable manner. The proposed project would assist in the Government's agenda to
"strengthen the legal and regulatory framework" by enhancing a judicial system that is independent,effective and accessible.
2. Main sector issues and Government strategy:
1. Background
During the Soviet era, judiciaries throughout the Soviet Union were reduced to roles as obedient executorsof the instructions and policies of the Government and the Communist Party. The Procuracy and theMinistry of Justice (MOJ) dominated the nominally separate judicial system. Armenia is aspiring to break
with the past and establish an independent judiciary where judges would issue decisions based on the lawand exercise discretion within its limits. Taking into account the legacy of the Soviet times, it is importantto balance the power of the three branches of government. The institutional guarantees for the independenceof the Armenian judiciary from the other branches of government are therefore of paramount importance.
The Government of Armenia (GOA) has recognized the need for a reform program that would pave theway to economic recovery. It has launched an impressive program of reform combining stabilizationpolicies, structural adjustment and privatization. Economic reforms, however, cannot flourish and privateinvestors and entrepreneurs cannot prosper without a legal and judicial system which can effectively protectprivate property, enforce contracts, defend economic rights against infringement and establish a secureenvironment for local, and foreign investments and market relations. Since 1991, Armenia has adopted anumber of laws and regulations building infrastructure for a market economy, including company law,
banking law, bankruptcy law, land law, etc. The key accomplishment was the passage in May 1998 of theArmenian Civil Code (effective January 1, 1999). The Civil Code lays the foundation for property andother institutional rights based on market principles and establishes key commercial law precepts. What
must now follow in the economic law area is the completion of important economic/commercial lawsderiving from the Civil Code, together with institutional strengthening of the implementing agencies,registries, courts and other bodies engaged in the implementation, administration and enforcement of those
laws.
Accomplishment of these tasks was also an important factor in the process of Armenia's accession to theWorld Trade Organization (WTO). It is also critical for Armenia's fulfillment of its responsibilities as a
member of the Council of Europe.
2. Government strategy ofjudicial reform
Over the last years, the GOA has made a clear commitment to reforming its judiciary. The two documentsthat laid the groundwork for this reform effort are the Constitution of Armenia of 1995 and the Legal andJudicial Reform Concept Paper adopted in 1997 (The Concept Paper). These documents subscribe to theprinciple of the independence of the judiciary and set as their goal the transformation of the Armenianjudiciary from the old Soviet style bureaucracy to a modem functioning institution with the capacity toresolve disputes among private parties, protect property rights, enforce contracts and protect individualsagainst the arbitrariness of state actions.
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The Concept Paper states as the main objective of the reform program the establishment of an independentjudiciary that: (i) plays an important role in the state based on the rule of law and separation of powersprinciples; (ii) guarantees development of a free democratic society and protection of human rights; and (iii)supports effective market relations and private sector development.
The Concept Paper covered a broad range of reform actions in the judicial sector:
(a) reorganization of the court system in Armenia;(b) reform of the Procuracy;(c) establishment of a new legislative framework for the judiciary;(d) transfer of the correctional institutions from the jurisdiction of the Interior Ministry to the Ministry of
Justice;(e) reform of the service responsible for the enforcement of court judgments;(f) reform of the Ministry of Justice;(g) developing a new system of judicial training; and(h) launching public education and public awareness campaigns in the area of legal and judicial reform.
3. The new legislative framework
During 1997-1999, a number of fundamental laws has been adopted by the parliament which provide alegislative framework for the establishment of a new independent judiciary, among them: the Law on theJudiciary; the Law on Status of Judges; the Law on Procuracy; the Law on Compulsory Enforcement ofJudgements; the Law on the Service for the Compulsory Enforcement of Judgments; the CriminalProcedural Code and Civil Procedural Code. These laws became effective in January 1999.
The new laws on the judiciary created a three layer court system in which the first instance courts ofgeneral jurisdiction hear all criminal, economic and criminal cases. The three appellate courts -- the Courton Civil Cases, the Court on Economic Cases and the Court on Criminal and Military Cases -- form thesecond layer. The highest court within the new system is the Court of Cassation which considers appealsfrom the courts of the first and second instances.
Under the Law on the Procuracy the primary function of the prosecutor in criminal matters would be todefend the position of the prosecution on behalf of the state, and in civil matters, prosecutorial involvementwould be limited to defending the interests of the state in civil litigation. The power of the prosecutor toappeal civil judgments entered into force has been eliminated, thus preventing the supervisory oversightover the judicial process which is incompatible with the principle of independence of the judiciary.
4. Independence of the judicial branch
(a) Soviet legacy
In Soviet Armenia, as well as in other parts of the FSU, a central shortcoming in the administration ofjustice was the absence of judicial independence. Courts in the Soviet Union were neither regarded nortreated as an institution separate from the political regime they served.
Judges had no guarantee of professional security and private welfare, and the funding and servicing of thecourts failed to shield judges from the outside world. In fact, in rendering decisions at trial judges wereexposed to, rather than insulated from, external pressures, some of them coming from political officials.The local party leaders had a voice in the judge's continuation in office, including a say in their periodicrenomination for "election" and the right to initiate a recall. Most judges felt sufficiently obliged to their
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local patrons as to cooperate with their needs -- whether responding to their occasional interventions abouta case or maintaining appropriate records.
The judiciary as a whole felt even greater dependency on its vertical master -- the MOJ. The MOJadministered the courts by controlling their budgets, distributing bonuses, handling complaints, monitoringdelays and writing the performance evaluations on which judges' career advancement depended.
Another sign of the lack of independence of the judiciary was its relationship with the Procuracy. TheSoviet model of Procuracy was a universal supervisor over legality in the entire society. Under theprosecutor's supervision and oversight were citizens, enterprises, municipalities and the government.Prosecutors dominated over the judicial branch in both criminal and civil process. Prosecutors had the rightto overrule judge's decisions, could initiate criminal proceedings against judges without any intervention ofjudicial bodies, and had numerous other means to effectively influence judges' rulings and actions.
The principle of an independent judiciary was established in the new Constitution of the Republic ofArmenia of 1995. The Constitution declares that "state power shall be exercised based on the principle ofthe separation of the legislative, executive and judicial powers" (Article 5) and that "justice shall beadministered solely by the courts in accordance with the Constitution and the laws" (Article 91).
But the really bold measures to develop and enhance judicial independence in Armenia were adopted in1995-1999. These measures targeted personal independence of judges (life tenure, appointment andremoval from the office, compensation, safety, and immunity from prosecution), as well as the issues ofinstitutional autonomy.
(b) Measures to strengthen personal independence ofjudges:
The Law on the Status of Judges established the principle of life tenure for all judges: the judges serve onthe bench until they reach retirement age of 65.
More importantly, the Law established the rule that removal of a judge from office could result only forserious cause and only by decision of the Council of Justice. Similarly, imposing a disciplinary action on ajudge has to be based on specific grounds listed in the Law and the matter is subject to the consideration ofthe Council of Justice.
The appointment process for judges is specified in the Constitution and the Law on the Status of Judges.All judges are nominated by the President upon the recommendation of the Council of Justice. The Ministerof Justice presents initial nominations to the Council of Justice following the results of qualification examsand evaluation of their competence, practical experience and personal integrity.
While the appointment, disciplinary and removal procedures for judges conform to commonly recognizedstandards of judicial independence, the key to developing a truly independent judiciary now lies mainly intheir implementation. The procedures and institutional arrangements for judicial qualification exams needto be further refined and the role of the executive branch in the nomination of judicial candidates furtherreduced. The grounds for initiating disciplinary actions and removal of judges from office, as stipulated inthe law, are not sufficiently clear and can be abused in the absence of well-defined ethical standards ofjudicial behavior.
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One of the main issues which has been the subject of continuing debate within the legal and judicialcommunity in Armenia is the composition and role of the Council of Justice, particularly in the process ofappointment and dismissal of judges. The President of Armenia heads the Council of Justice; the Ministerof Justice and the Prosecutor General are the two Deputy Chairpersons. The Council of Justice consists of14 other members: 9 judges, 2 academics and 3 prosecutors. In order to strengthen the representation ofjudges on the Council, the Constitutional Amendments Commission established by the President hasprepared a proposal to amend the Constitution so that the Council of Justice consists entirely ofrepresentatives of the judiciary. The Bank has been strongly supporting this change in the course ofpreparation of the project.
(c) Strengthening institutional independence of the judiciary
The CCC was established in 1998. It consists of court chairmen (20) and is chaired by the Chief Justice.The Council is assigned a wide range of management and supervisory responsibilities, includingadministration of courts, developing and implementing uniform court administration, personnel, budgeting,case management policies and assessing on an ongoing basis the status of administration of justice inArmenia. It is also responsible for the organization of ongoing training for judges and other courtpersonnel.
Establishment of the CCC was a significant development towards strengthening independence of theArmenian judiciary. It assumed most of the responsibilities of the MOJ in the area of court administration.However, the CCC has a number of challenging tasks to face if it wants to serve as a truly governing boardof the judiciary. First of all, the CCC should have plenary authority over the administrative affairs of thejudiciary which should be more clearly reflected in the statutes of the CCC. It also needs to organize asystem of Working Committees which would be responsible for developing common policies andprocedures in specific areas of court administration. It needs to develop a system of interaction withindividual courts and chairmen which would ensure implementation of the CCC's decisions in the areas ofcourt administration by individual judges. It also needs to develop a strategy for interacting with the public,mass media and other branches of government.
A similar program of institutional building is required for the Administrative Office of the CCC whichcarries the main bulk of day-to-day activities deriving from the mandate of the CCC.
(d) Financing of the judiciary and working conditions ofjudges
Not only judges personally, but also the courts as institutions need protection from external pressure, andfor courts to operate independently require appropriate funding -- both sufficient and stable. During theSoviet period, the court system was considered as the lowest priority of the government in terms ofspending budgetary funds. As a result, budgetary allocations for the judiciary have been extremelyinadequate for proper maintenance of court buildings, provision of supplies and equipment, training, andthe use of computer technology by court personnel. The salaries provided to judges and court staff werebarely adequate -- causing judges to rely upon the generosity of local officials, and occasionally to fall preyto corruption. Distribution of scarce budgetary resources among courts was the responsibility of the MOJ,and the courts had no saying in the planning of their expenditures or monitoring the use of the funds.
The reform has introduced some radical changes in the court financing system. Financing of courts, as abudgetary item, is now separated from the MOJ and law enforcement agencies. Each court has its ownbudget line item which is reflected in the budget law. In 1999, the CCC has received exclusive authority toprepare a budgetary proposal for the judiciary and administer the use of budgetary resources. Judges'
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salaries have been significantly increased in early 1999, although their timely payment is still not
guaranteed by the Ministry of Finance and Economy (MOFE).
While these changes are significant improvements in the financing of the judiciary, they also require serious
efforts in building the capacity within self-governing judicial bodies and individual courts to effectively
plan, use and control financial resources allocated for the judiciary.
Working conditions of judges require urgent and essential improvements. This is particularly true for
courthouses. The court buildings, court rooms and offices are generally dilapidated due to lack ofmaintenance and upgrading over several decades. During the restructuring and reorganization of the court
system in 1998, newly established courts received buildings which were not constructed as courthouses. A
number of courts occupy the buildings of former schools kindergardens and even apartment buildings.
Hence, internal configuration and design of these courthouses are not suitable for the work of courts.
None of the courts have adequate security systems. Physical security of judges has become a serious
concern which is not yet being addressed. Computer and other technology requirements are extremely
limited. Most of the operations such as writing a protocol during a trial, filing suits, and keeping recordsare done manually. Some of the courts do not even have typewriters. Legislative materials and other legal
literature are usually acquired by individual judges at their own expense. Courts do not have libraries or
comprehensive legal databases. Such conditions seriously impair the efficiency of judges' work, as well as
the court as a whole.
S. Legal education
Legal education needs significant improvements. Armenian legal education is still dominated by the
Soviet-style teaching methods and techniques, i.e. heavy focus on legal theory, legal history andmemorization of rules. It does not adequately teach legal problem-solving skills. There are few courses thatdeal with issues in actual law practice, such as interviewing and counseling, business planning, negotiationsand pretrial and trial procedure. The curriculum and the faculty structure continue to reflect the public lawpriorities of a command economy and society rather than the changed realities of a market-based economy.Especially needed are courses in the private law disciplines in general and in business-related subjects in
particular, plus development of public law courses related to business regulation.
The Law Faculty of the Yerevan State University (YSU) is the only state law school. YSU law school has
around 600 students (entering class of 120) in its 5-year undergraduate law program. There are between 40and 80 various private schools that exist, but they are still in the process of development. Another privatelaw school is the American University of Armenia, founded with assistance of the University of California
and some international donors.
The reforms in legal education will benefit, at the earliest, lawyers who go into practice in the next 3-5years. Consequently, any serious reform of legal education must take into account and try to reach lawyers
who are currently practicing. Training of lawyers in the form of continuing legal education is especiallyimportant, given that current lawyers must learn a mass of new laws and regulations. Continuing legal
education for practicing lawyers outside of the judiciary and Procuracy has little history in CIS countries.Yet, the demand for it, especially in commercial law areas, is great.
6. Continuing educationforjudges
The importance of the training and education of judges is recognized in the Concept Paper. The documentdifferentiates between the "initiating educational" programs and specific training programs for judges. The
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issue of intensive training for judges became particularly acute in early 1999 when a new corps of judgeswas appointed following qualification exams. About 60% of newly appointed judges were new to thebench.
According to the Law on the-Judiciary, training of judges lies within the authority of the CCC. The CCCorganized a number of training sessions for newly appointed judges during 1999. In 1999, a new JudicialTraining Center was established under the auspices of the CCC.
The creation of a cost effective judicial education resource center for use by all judges and other courtpersonnel is an important national objective. Continuing judicial education programs not only enhance thecompetency, efficiency, accountability and impartiality of judges, but also seek to cause attitude changesessential to support judicial reform.
Judicial training programs in Armenia have been receiving significant support from several extemal donors,including EU TACIS, USAID, Soros Foundation, ABA CEELI, and GTZ. The EU TACIS grant program(approximately Euro 1.0 million) has been specifically designed to support the start-up activities of the JTCduring the first 18 months of its existence. Despite the availability of donors' funds for judicial educationprograms, the work in this area has been primarily focused on organizing short-term training, seminars,conferences and study tours for judges. Development of a comprehensive strategy for the judicialeducation system has been slower than expected.
7. Enforcement of court decisions
Enforcement of judicial decisions has emerged as a particularly difficult issue for the Armenian judiciary.In the Soviet period, the judicial enforcers (or bailiffs), who were attached to the district level courts, wereengaged mainly in the implementation of civil judgments from the general courts, covering such privatematters as alimony payments (arranging garnishing of wages), labor disputes (ensuring payment of backwages after illegal dismissal), and conflicts over living space. Bailiffs had very limited experience withenforcing commercial judgments since most of the judgments called for the transfer of assets from the bankaccount of one state enterprise to the bank account of another.
In the course of economic reforms and due to a growing volume of commercial and civil cases handled bycourts, the demand on the services of enforcement agents has dramatically increased. However, the existingenforcement agencies were lagging behind in this process due to inefficient administrative structures,shortage of funds and lack of well-trained professional staff.
In an effort to address this problem, the Government undertook reorganization of the enforcement agencies.Based on the new laws regulating the enforcement of court judgments which were adopted in 1998, a newstructure -- the Service for Enforcement of Court Judgments (Enforcement Service) -- was establishedunder the supervision of the MOJ. The Service has a staff of about 300 people, which includes the centraldepartment in Yerevan and regional branches in the marzes.
Although the Enforcement Service only became operational in early 1999, it has made considerableprogress in enforcement of court decisions: in 1999 the number of judgments which were enforced with theinvolvement of the Service (this does not include voluntary compliance cases) has increased twelve timescompared to the previous year.
Notwithstanding this impressive record, the newly established system requires major improvements andinvestments. The legislative framework has certain gaps and inconsistencies. Some efforts on drafting
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amendments to existing laws on the enforcement system are already under way; GTZ experts have beenworking with the Enforcement Service and the MOJ very actively in this area. The Enforcement Service
needs assistance in completing its organizational structure. Training of the personnel is the greatest priority.Technological needs and other equipment and vehicle needs are enormous, since certain functions of bailiffs
can only be fulfilled if they have mobility, access to required information, communication devices, etc.
8. Legal profession, advocates, prosecutors, professional associations
The main role of the bar associations in all countries is to regulate the profession through entrancerequirements and the disciplinary system, to provide legal training for its members, and provide legalservice to the community.
In Armenia, the Association of Judges is the most prominent professional organization which currentlyincludes the majority of sitting judges. The organization has been particularly effective in organizing
training for newly appointed judges, providing legal services to vulnerable groups of Armenian population
and promoting better understanding of law and legal procedures among citizens.
There are three registered Unions of Advocates in Armenia which have been playing an increasinglyimportant role in ensuring quality of legal services to the population, provision of legal aid and assisting inlegislative drafting. In December 1997, a new association of lawyers was created - Bar Association of the
Republic of Armenia. The Bar Association has as its goals: preparation of the code of professionalethics; contributing to the improvement of the legislative process; strengthening the rule of law; provisionof professional support to practicing lawyers, organization of seminars and conferences and promoting oflegal publications. There are other NGOs such as the Young Lawyers Association, Union for Law and
Policy, etc. which have been primarily working on dissemination of legal information to the population andprovision of affordable legal services.
Many of the judicial reforms will affect the legal profession, thus it is important that they becomeparticipants and supporters of the reform process. More importantly, an active participation ofnon-governmental organizations of lawyers and judges in monitoring the legal profession as well as thejudiciary through establishment of ethical standards and effective disciplinary system will eliminate theremaining supervising role of the executive organs over the judiciary, which would in turn strengthen the
independent status of the judiciary vis-a-vis the executive branch.
9. Legal information
One of the fundamental elements of the rule of law is that in order to expect people to abide by certain rulescontained in laws and other normative acts, the texts of these rules need to be easily accessible andavailable to people. This is especially important for judges whose task is to implement and enforce theserules. Unless they have access to all normative acts, they cannot be expected to properly perform their job.
There is no comprehensive system of codification of laws, other normative and administrative regulations inArmenia. There have been several attempts to develop a classificator for laws, but the work did not coverall the legislative and normative acts, and has never been fully completed.
Another issue that needs to be urgently addressed is the establishment of a legal database which wouldfacilitate systematization and dissemination of legal information to judges, other legal professionals and thepublic, and which would facilitate legal research. Currently, there are several private "Nexus-type" legaldatabases, based upon a "key word search" method. These databases are used by some legal practitioners
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and by a very limited number of Government agencies and judges.
There is no established mechanism for dissemination of information -- such as court decisions, resolutionsof the Cassation Court, the CCC, court statistics -- between courts. Resolutions of the Cassation Courtand of the CCC are sporadically printed in the bulletin of the Association of Judges in limited numbers, orfaxed to individual courts. Court decisions are not published and are therefore not accessible to thejudiciary or public at large.
10. Public trust in the judiciary, public attitude to laws and legal order
In Armenia, the respect for the judiciary among the public is critically low. People do not trust the courtssystem and therefore avoid it. A survey of public attitude and public awareness of laws and legalproceedings was conducted in December 1999-Janury 2000. The survey was financed by the PHRD Grantand its results and conclusions have been used in designing interventions under the Public Awarenesscomponent of this project.
The survey results have demonstrated that courts, prosecutors' offices and tax inspections are evaluated atthe lowest performance scale among the governmental bodies. Courts and prosecutors' offices areperceived as being corrupt and partial. Even in emergency situations, 36% of respondents said, they wouldturn to private individuals or local officials for settling their legal disputes, and not to courts.
An overwhelming majority of respondents have attributed low quality of laws to ineffectiveness of the legalsystem in Armenia. 42% of respondents characterized the Armenian laws as protecting primarily theinterests of wealthy people. Almost all focus groups believed that Armenian laws were not equallyenforced for all social groups. Respondents representing government agencies and law enforcementauthorities also emphasized poor quality and inconsistencies of laws and other regulations.
Equal access to justice appears to be constrained for certain groups of the population. Although the rightfor legal protection is guaranteed by the Constitution for all citizens, 17% of respondents of the surveyhave mentioned high fees for court and legal services, particularly for private attorneys, as a barrier tousing courts. Several NGOs, including legal professional organizations, have been actively involved inproviding free legal aid to vulnerable groups of the population over the last five years. However, there isno state-supported comprehensive system of legal aid in Armenia. Neither is it customary for privatelawyers to do pro bono work for the poor population.
Another critical problem in this area is lack of accessible information about citizens' legal rights andobligations, forms of dispute resolution mechanism, legal proceedings and enforcement. Printed legalmaterials are either not accessible (e.g. government orders, ministries' ordinances and regulations) or notaffordable for ordinary citizens. In the area of civil litigation, courts do not provide information to citizensor companies on procedures how to file complaints, pay court fees, involve witnesses, etc. Sample formsand blanks are not available to litigants. Instead, citizens have to make appointments with a judge forpre-trial meetings; as a result, judges spend way too much time on providing routine information on courtprocedures and discussing jurisdictional issues with litigants, tasks which should be performed by judges'assistants.
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3. Sector issues to be addressed by the project and strategic choices:
The preparation phase of the project has invested in sector assessment, technical studies, and coalition
building in all major areas of judicial reform, and conducted surveys of public opinion and awareness of the
reform process. In early 1998, the Bank team carried out a Judicial Sector Assessment which outlined, inter
alia, specific proposals on the structure of judicial institutions, court administration, status and
appointment of judges, and judicial training. The work on the Judicial Sector Assessment has started an
active policy dialogue between the Armenian Government and the judiciary and the Bank in the area of
legal and judicial reform, with particular focus on strategic choices of the reform process, phasing of
reform activities and the Bank's involvement in supporting the reform program. Further to this, three major
assessments have been conducted with financing under the PHRD Grant: (i) an assessment of the court
administration and case management systems in Armenia: (ii) an assessment and feasibility study for the
rehabilitation of court houses; and (iii) a public opinion survey. An assessment of the system for
enforcement of court decisions and a masterplan for the JTC were completed with SATAC II funds.
Based on this preparation work and extensive consultations with the Government and representatives of the
judiciary, the following sector issues are targeted by the project: (a) strengthening of judicial
self-governance and institutional capacity of the judiciary; (b) increasing efficiency of courts through
improved court administration and case management procedures and court automation; (c) upgrading and
rehabilitating court houses; (d) development of an institutional base for continuing judicial education; (e)
improving enforcement mechanism for court decisions; (f) supporting systematization and codification of
legislation and improving access to legal information; and (g) increasing public awareness of legal rules
and proceedings, protection of citizens' legal rights and their knowledge of the ongoing reforms. The
Government has submitted to the Bank a Policy Letter stating the Government's commitment to
continuing the judicial reform in the country, outlining the current priorities of the reform process and
the areas selected for the support through the Project (Attachment to Annex 2).
(a) Strengthening of judicial governance and institutional capacity of the judiciary
It is difficult for courts anywhere to have power and prestige without also possessing institutional
independence and a separate corporate identity. Institutional independence calls upon the judiciary to
govern and manage itself without interference from the other branches. The Armenian courts gained a
structural starting point to build an effective administrative component when the CCC was established by
law and when the CCC proceeded to delineate by regulation the duties of the head of the Administrative
Office and the supporting office. Nevertheless, both these bodies have not yet completed developing
operating structures for ongoing day-to-day administrative leadership and support that characterize
successful court systems. In sum, the pressing need in the Armenian courts is to fashion a full
administrative infrastructure to support the basic outline already in place.
The project will support provision of technical assistance in organizing the CCC as a governing body,
training of its members and staff, and publication of the CCC newsletter. Assistance to the Administrative
Office will include technical assistance for organizational development of this body, training of its staff and
automation of its main administrative functions. The project will also support enhancing the role of judges
in judicial self-governance through judicial conferences and technical assistance in the development of
ethical standards for the judiciary and evaluation of judicial performance models.
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(b) Increasing efficiency of courts through improved court administration and case managementprocedures and court automation
Underdevelopment of court administration and case management system puts an additional pressure onjudges and therefore reduces the efficiency of courts. Delays and backlogs are now commonplace inArmenia, especially in criminal cases. This is due to ineffective allocation of human and technologicalresources in the court system, absence of modem practices and techniques for case management,maintenance of records and collection of statistics. Judges spend a lot of time resolving administrativeproblems and performing routine clerical matters because courts do not have professional courtadministrators, adequately trained assistants, clerks and registrars who could and should perform thesefunctions. Efficient use of judges' time have major fiscal implications for the judicial system: there arealways attempts to deal with case overloads by increasing the number of judges which, in turn requiresadditional budgetary resources, space and court personnel. The program supported by the project aims atdevelopment of a modem court administration system, with a particular focus on court financing; efficientallocation and use of court resources (i.e. judges, administrators, registrars, assistants and other personnel);and design of the reliable and meaningful statistical information system.
The project would also assist in the development of an effective case management system which wouldensure timely and effective processing of cases by the judicial system.
Few Armenian courts are automated. The situation in courts outside of Yerevan is much worse, where eventypewriters are not always available. To support court management and enhance the flow of information todecision-makers, it is important to provide courts with some form of automation as quickly as possible. Theuse of computer technology would significantly improve access of judges to electronic legal information aswell. Although the project does not aim at carrying out a complete automation program for Armeniancourts, it will provide an initial investment for what will eventually become a nationwide network forArmenia's judiciary. The project will provide computer equipment, software and technology for courts ofgeneral jurisdiction for the purpose of legal research, centralized case docketing, maintaining statisticalrecords, transmitting decisions, providing electronic mail, and introducing case management.
(c) Court infrastructure rehabilitation
The project will assist the Government with rehabilitation and reconstruction of court buildings. The courtfacilities currently available to many first instance courts are in deplorable condition. For a variety ofreasons, these facilities received little or no maintenance and repair during the past decades. In addition, anumber of court facilities were destroyed or severely damaged by the 1988 earthquake, and have not yetbeen replaced or adequately repaired. As it has been repeatedly emphasized by the Government and judgesthemselves, unless the conditions of court buildings are improved considerably, there is a risk that manyinitiatives of the judicial reform program would not bring visible results and credibility, and publicconfidence in the reform process would not be secured.
Based on a comprehensive inventory and needs assessment of courthouses carried out with the financingunder the PHRD Grant, and consultations with the CCC and the MOJ, the rehabilitation program has beendesigned in the following way. First, the purpose of the rehabilitation program would be not only toimprove working conditions for judges and court personnel, but to reflect objectives and achievements ofthe judicial reform in Armenia in the design and construction of court buildings: e.g. to enhance security ofjudges and users of courts, to ensure more efficient planning and configuration of court facilities; toaccommodate new functions of court personnel (e.g. court administrators, judges assistants, etc.), toprovide adequate space and accommodations for the public, etc.
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Twenty courthouses have been selected for rehabilitation under the project, based on their location, number
of judges, volume of cases and required rehabilitation needs. This would represent about 50% of court
buildings in Armnenia. (The list of selected courthouses is included in Annex 2). Among them, 13
courthouses would be rehabilitated in order to meet certain minimum standards for an adequate and
functional courthouse. Seven courts have been selected as pilot courts which will be rehabilitated to meet
enhanced standards of a courthouse. These court houses are expected to demonstrate the examples of
modemized courthouses which serve the objective of an independent, transparent and efficient judiciary.
(d) Training of judges and court personnel
The need for training of the sitting judges as well as court personnel has been identified as a priority in the
reform of the Armenian judicial system. An institutional capacity to cater for these training needs, however,
does not exist. Only some ad hoc training has been provided (including overseas training tours), mostly
with external donor support. The new Judicial Training Center still lacks an organizational and
management structure, design of training courses, curriculum and faculty. Although the premises of the
Cassation Court have been provided for the Center, it presently does not have any specialized equipment,
library or teaching materials.
The JTC is at the very initial stage of its development. It currently has five people on staff, including a
full-time Director. The Center is using the premises of the Cassation Court and it also receives some
administrative and logistical support from the Administrative Office of the Cassation Court. The priority
tasks faced by the JTC are the following: (i) to develop a long-term strategy for judicial education which
would define objectives and standards for such education, training methodology and techniques; interaction
and cooperation with regional and international educational centers, performance indicators for regular
assessment of the judicial education programs, etc.; (ii) to establish an organizational and management
structure of the Center; (iii) to develop training curriculum; (iv) to identify trainers and lectures and
organize training of trainers; (v) to design different training programs for judges, court administrators,
judicial assistants, etc.; and (vi) to equip libraries, laboratories, computer classes and organize printing and
distribution of teaching materials.
Thz Bank has provided initial support for accomplishing the above-stated goals through financing the
preparation of a master-plan for the JTC with the funds of the Second Structural Adjustment Technical
Assistance Credit (SATAC II). The plan was completed in early 2000 and has been provided to the
management of the Center, the CCC and to the MOJ.
The project would assist in: (i) formulating a strategic concept of continuing judicial education in Armenia;
(ii) support in the development of the JTC's organizational and management structure; (iii) curriculum
development for certain training subjects; and (iv) provision of specialized equipment for the JTC.
The design of the component has been prepared based on the analysis of a training needs assessment
conducted by the ABA CEELI office in Yerevan, preparation work for the JTC financed under SATAC II,
and assessment work done by the EU TACIS. The team has been closely coordinating its work with EU
TACIS which has approved a grant approximately equivalent to Euro 1.0 million for the institutional
support for the JTC.
(e) Enforcement of court decisions
The current status of the newly established Enforcement Service has been described in Section B.2.
- 13 -
Training of new bailiffs has been emphasized by the Armenian authorities as the first priority in this area.Although most of the staff of the Enforcement Service have legal education, they are lacking knowledge ofcurrent specific legal provisions, good insight into the overall legal framework in which they operate,experience and skills in the new functions imposed on the Enforcement Service, particularly in the area ofenforcement of commercial judgments. The issue of specialization among bailiffs also needs to beaddressed.
The project would assist a newly established structure in the areas of capacity building, training ofpersonnel, and provision of equipment.
(f) Legal information
There are several important dimensions to the legal information framework: classification,registration/collection, dissemination to government entities, courts and the public, and publication. InArmenia, all mentioned areas need significant improvements in order to develop a new legal informationregime that can support ongoing legal and judicial reform in the country.
The project will provide assistance in: (i) strengthening institutional and operational capacity of agenciesresponsible for maintaining authoritative texts official legal materials, their systematization andcodification; (ii) developing Government strategy for facilitating competitive and effective dissemination oflegal information; and (iii) improving access to essential legal information by judges and other legalprofessionals.
(g) Public education and public awareness campaign
The survey results have revealed that the public has very limited knowledge of the existing laws and legalproceedings in Arrnenia, does not trust the courts and law enforcement agencies and is barely familiar withthe reform process in the legal and judicial area.
Unless this negative attitude changes and until the public trusts and respects the judiciary, it will not use thecourt system and could resort to extra-judicial means, often illegal, to resolve disputes. A meaningfuljudicial reform needs to focus, as one of its priorities, on educating the public and challenging its attitudesto the law and legal institutions. A series of interventions is designed under the Public Awarenesscomponent under this project to contribute to the above task, including development of a comprehensivepublic relations strategy for the judiciary, support for specialized TV and radio programs addressing theissues of legal/judicial reform, seminars and lectures for the population in marzes on legal protection ofindividual and property rights, and publication of popular brochures on legal issues.
The project will also address the issue of building communications skills within the judiciary.Accountability and transparency of the judiciary cannot be achieved without public access to theinformation on court decisions and other aspects of the courts' work. Community understanding andacceptance is at the heart of effective performance of the judicial function. For this purpose, the CCC willbe provided assistance in establishment of a separate structure responsible for dealings with mass media,the government offices and interactions with the public.
The project will also invest in journalism training. A knowledgeable press is the primary (and perhaps only)way a community can learn what the courts are doing. Often the press faces the problem of simplyunderstanding a court decision which is long and technical, and can be difficult even for knowledgeablelawyers. But even when the press overcomes such technical problems -- and presents a case in acomprehensive manner, it must address the fact that the community is not interested in the case's legal
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technicalities but rather its political, social, economic, or other significance. To respond adequately to these
issues, journalists do require some kind of special knowledge.
C. Project Description Summary
1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost
breakdown):
indicative Xank- % off Component Sewr Cos#t % of financing Bank-______________________M T_ . (U"I$) financing
A. Strengthening Institutional Institutional 2.63 21.6 2.63 23.1
Capacity of the Judiciary DevelopmentJudicial governanceCourt administrationCase managementCourt automation
B. Court Infrastructure Rehabilitation Institutional 6.46 53.0 5.66 49.6
* Rehabilitation and refurbishing of Developmentseven pilot courthouses (includingconstruction of one new building)Rehabilitation of 13 courthousesDevelopment of new design and space
planningstandards (including securitystandards) for the construction andrehabilitation of courthousesC. Training of Judges and Court Institutional 0.53 4.3 0.53 4.6
Personnel Development* Institutional support to theJTC
Curriculum development andprovision of equipmentD. Improving the Enforcement of Court Institutional 0.59 4.8 0.59 5.2
Decisions DevelopmentInstitutional strengthening of
the Enforcement ServiceTraining of Enforcement Service staffAutomation of the Enforcement
Service
- 15 -
E. Dissemination of Legal Information Institutional 0.69 5.7 0.69 6.1* Assistance in codification Developmentand systematization of laws;. Development of an electronicdatabase for maintaining authoritativetext of official legal acts
Development of a strategyfor facilitating pnvate and competitivedissemination of legal information* Provision of essential legal materialsto courtsF. Public awareness and public Institutional 0.75 6.1 0.75 6.6education Development* Development of a PR strategy for thejudiciary* Dissemination of legal informationthrough television and radio programs,seminars and brochuresJournalist's trainingPublic opinion surveys
G. Project Management 0.55 4.5 0.55 4.8Total Project Costs 12.20 100.0 11.40 100.0
Total Financing Required 12.20 100.0 11.40 100.0
I/ Costs are based on base cost plus ten percent contingencies.
2. Key policy and institutional reforms supported by the project:
A policy dialogue initiated by the Bank during carrying out an assessment of the judicial sector in1997-1998, and continued in the course of project preparation, has already produced a significant impacton carrying out the judicial reform in Armenia. The recommendations set forth in the Bank's assessmentreport have been largely incorporated in the newly adopted laws on the judicial system in Armenia. MheProject is expected to provide significant contribution to several areas of the judicial reform:
(i) the court administration reform;
(ii) reform of court financing;
(iii) development of a new strategy of continuing judicial education; and
(iv) reform of the enforcement service.
The Project also has a strong focus on strengthening the institutional capacity of judicial bodies, including:
(i) the Council of Court Chairmen - in the area of judicial governance and court administration;
(ii) the Administrative Body in the area of court financing and general administration;
(iii) the Enforcement Service; and
(iv) the Judicial Training Center
- 16-
3. Benefits and target population:
The main project benefit would be a reformed judiciary which administers justice fairly and impartially and
which is accessible and well regarded by the government and the general public. The proper functioning of
the judicial system is of immense importance for the development of private sector. Both domestic and
foreign investors are looking for legal and judicial system where property rights, contractual arrangements
and other lawful actives are safeguarded and respected, free from arbitrary governmental action and from
pressure by special interest groups or powerful individuals. Judges are expected to benefit from the project
in many respects, specifically, in terms of enhanced professional training, administrative independence and
security, improved working conditions and better access to legal information, etc. General public would
benefit from a fair and professional justice which would guarantee an adequate protection of their legal
rights and freedoms, promote economic development and would contribute to a stable economic and
political environment in general. Legal professionals would benefit from improved court services and
improved access to legal information.
4. Institutional and implementation arrangements:
The CCC and the MOJ will be the two leading entities responsible for project implementation. The Bank's
experience in the area of judicial reform indicates that the judiciary should oversee judicial reform project
management to prevent a conflict with the principle of judicial independence and to promote ownership. In
this respect, the CCC is uniquely positioned to provide such leadership in project implementation.
However, the executive support is essential in judicial reform projects both to support their implementationand to provide post-project funding for their continuation. The MOJ has demonstrated an interest and
active support to the proposed project. Besides, certain components of the project, such as enforcement of
court decisions and codification/systematization of laws fall under jurisdiction of MOJ and would be
primarily implemented by it.
The project team clearly recognized during the preparation stage that implementation arrangements would
have to be carefully designed to avoid potential tension and/or competition between the two agencies. In
order to address this issue, a Project Steering Committee comprising the Chairman of the CCC and the
Minister of Justice was established for coordination of project preparation activities. In addition, Working
Groups have been established for all six components of the project. Three Working Groups-- for the
Judicial Governance, Court Rehabilitation and Training components -- are chaired by judges who are the
members of the CCC. Two Working Groups -- foi the Enforcement of Court Decisions and Legal
Information components -- are chaired by the representatives of the Ministry of Justice. The Working
Group (Advisory Board) for the Public Awareness component is headed by the Chairman of the
Constitutional Court. The established arrangements proved to be very effective. The Working Groups
have actively participated in assessment activities conducted by consultants financed by the PHRD Grant,
as well as in design of particular project interventions. These arrangements also ensured active
involvement of individual judges in project preparation, as well as transparency of the process (which was
particularly important in the process of selection court houses for the rehabilitation program).
The implementation arrangements for project implementation will be based and will draw on successful
experience of the Working Groups. The Project Steering Committee will be transformed into Project
Administration Council (PAC) which is now mandated for all World Bank projects pursuant to the recent
GOA resolution. The PAC will be chaired by the Minister of Justice and consist of nine members,
including one from the Ministry of Finance and Economy, one from the Prime-Minister's office, the head of
the Enforcement Service, the PIU Director and three representatives of the judiciary, including the
Chairman of the CCC. The PAC will be responsible for policy decision making, monitoring overall
- 17 -
implementation of the project, final tender evaluation, annual planning. The Working Groups will providespecialized/professional input into implementation process of particular components. They will be primarilyresponsible for drafting and clearing TORs, as well as providing inputs and supervising the work of theconsultants. This should ensure full ownership of the Project by the judiciary and the MOJ.
A Project Implementation Unit (PIU), headed by the Project Director, has been established under the PACand will be responsible for day to day project management. The PIU consists of technical specialists in thearea of procurement, financial management, accounting, and architecture. The PIT Director is a member ofthe PAC.
Financial Management
Financial Management Assessment: Responsibility for financial management of the project will rest withthe newly created Project Implementation Unit (PIU). A financial management specialist (accountant) isemployed by the PIU. During Negotiations, a time-bound financial management action plan was agreed toremedy existing deficiencies. More information on the project's financial management arrangements and theproject's flow of funds is found in the Project Operational Manual (POM).
Project Management Reports (PMRs): Management-oriented PMRs will be used for project monitoringand supervision. The formats of the PMRs (Cash Model) were agreed during Negotiations and areincluded in the Operational Manual. The PIU will produce a full set of PMRs for every calendar quarterthroughout the life of the project beginning with the period ending on March 1, 2002. However, the PMRsshowing the project's sources and uses of funds (PMR IA) and the project's Special Account Statement(PMR 1 E) will be produced from project effectiveness and the four procurement management reports(PMRs 3A, 3B, 3C and 3D) will be produced within six months of project effectiveness.
Disbursements. Project funds will be initially disbursed under the Association's established procedures,including Statements of Expenditure (SOEs). A move to PMR-based disbursements will be made at themutual agreement of the Government and the Association and will be considered once the PIU is familiarwith the project's monitoring aspects and is considered able to produce sufficiently timely and reliableproject management information. A change to PMR-based disbursements will be considered by September30, 2002 (the project's mid-term review).
Audit Arrangements: External audits by independent private auditors acceptable to the Association and onterms of reference acceptable to the Association will be procured by the PIU through Least-Cost Selection.Annual audited financial statements of the Project will be provided to the Bank within 6 months after theend of each fiscal year and also at the closing of the project. The contract for the audit will be extendedfrom year-to-year with the same auditor, subject to satisfactory performance. The cost of the audit will befinanced from the proceeds of the Credit an incremental operating cost.
- 18 -
INSTITUiTIONAL ARRANGEMENTS OF PROJECT [IMPLEMENTATION
r Projree Adrtirutstration C5uosurt i
Chair- \tio:stl of tust eMe.bJeru Chairnan of rhe Cou.c I
Chairman JudgesReprsucit.ve of MOJR.pioc of MOFPEReppresrsut=v- of G(JA Staff
X~________ - ltU Director |
| ludicial Goocruanee ortiirg GrouFp | PIU
| Chair: Chairman Judges 1 t DirectorFMS Specralist
-Court Infrstructure Rehabititation W -orkiug Group -`Prcit-r-not Specialist- i Architect
Chute: Ch.,rra. Judge SeRPuCirst
| Judicial Training Wurkiug Group i
LChasr Chairmau JudgeC
Enforcement of Court Decisiuns Working Group
Chair: Enforcement Service Depart.euo Chief
Legal Information Working Group
Char: Deputy Minister of Justice
Poblic Awareness A&li-ory Board I
Chaie: Chairman of the Coottiti-t.o1iI C,:rrMembees: Rpeeseotatihcs of the J,dic-ars, M(JJ,
Purlia-rt, and NGOD
D. Project Rationale
1. Project alternatives considered and reasons for rejection:
The Government of Armenia requested the Bank's financial assistance for supporting its ongoing judicial
reform as early as 1996. At that time, the Bank was providing technical assistance to the Government in the
area of drafting new economic legislation through a number of operations, including the Institution Building
Loan and Structural Adjustment Technical Assistance Credits (SATAC I and SATAC II). In response to
the above request, SATAC II included a separate component for addressing the most urgent needs of the
legal and judicial reform in the country, and the Bank launched a Judicial Sector Assessment in 1997.
Based on the conclusions of the Judicial Sector Assessment Report and consultations with the Government
and the judiciary, the Bank started the preparation of a free-standing operation in the judicial sector.
As an alternative, assistance to the judiciary through the Public Sector Reform Project (which was initially
planned for the lending program for FYO1) was explored at some point, but it was rejected for timing
reasons. The Government has strongly indicated its preference for a stand-alone operation in the judicial
sector given a complexity of the activities envisaged under the project, variety of beneficiaries and
stakeholders and importance of the timing factor -- the reasons which were accepted by the Bank. Also, a
possibility of expanding the project scope to include other areas of legal reform -- such as legal drafting,
legal education, alternative dispute resolution mechanism -- was explored during the initial preparation
stage. However, it was decided to keep the project focused on the urgent needs of the judiciary which were
strongly supported by the Government.
- 19-
2. Major related projects financed by the Bank and/or other development agencies (completed,ongoing and planned).
LatestSupoervisionSector Issue Project (PSR) Ratings
._________________j_____________ (Bankfi4nanced projects only)Implementation Development
Bank-financed Progress (IP) Objective (DO)Technical Assistance (legal institutional Institution Building Loan S Sbuilding component provided foreignexpert assistance in drafting ofcommercial legislation)
Technical Assistance (judicial sector SATAC 1 S Sassignments include: study tour for SATAC IIMOJ officials responsible forenforcement of court decisions;provision of 250 publication packages,each including the newly adoptedCodes, and other recently enactedlegislation to the new judges;preparation of an assessment report onStructural Reforms in the CompulsoryExecution of Civil Judgments;preparation of a master plan for theJudicial Training Center; assistance tothe CCC and the Administrative Officewith their internal organizationalstructure, training needs and futurestaffing; assistance with short-termtraining needs of newly appointedjudges; provision of equipment for thecourts, CCC and the MOJ.
Public Sector Public Sector Reform Project(planned)
Other development agenciesEU-TACIS Support and financing for the
organization andimplementation of acomprehensive judicial trainingprogram through theestablishment of the JudicialTraining Center, developmentof commentaries, and publicawareness.
- 20 -
USAID (IRIS, AMEX, ABA CEELI, Assistance in drafting ofChemonics) commercial legislation (Civil
Code, securities legislation,company laws, governmentprocurement, etc.); assistance indrafting of judicial legislation(Laws on Advocates Services,on the Status of Judges);short-term training of judges,court administrators, andprocurators; study tours forjudges, court and EnforcementService officials; assistance inthe preparation of qualificationexaminations for judges;continuing legal education forthe Yerevan State UniversityLaw School faculty;institutional development of theBar Association and theArmenian Judges Association;assistance to the CCC on courtadministration and casemanagement.
GTZ (Government of Federal Republic Assistance in drafting theof Germany) legislation on enforcement of
court decisions; preparation ofa master plan for theenforcement scheme; assistanceto the newly created CCC;provision of equipment to theAppellate Court on EconomicCases.
Soros Foundation (Open Society Publication of new text booksInstitute, COLPI) for the Yerevan State
University Law School; trainingof court administrators;provision of pro bono advocacyand other legal services.
IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory)
3. Lessons learned and reflected in the project design:
To date the Bank's experience in the area of judicial reform projects have shown that the project will onlysucceed if ownership and commitment at the highest levels of Government are in place (see below). Theother important lessons include the following:
- 21 -
(i) A judicial sector review should normally be a pre-requisite for any lending operation in the area ofjudicial reform. A comprehensive Judicial Sector Assessment for the Republic of Armenia was carried outin 1998, and the main conclusions and recommendations of the assessment are reflected in the projectdesign. In addition, specific assessments in court administration and case management, and judicialtraining, have been carried out in order to design specific interventions under the project.
(ii) Coalitions of leaders from the executive, the judiciary, legal profession, the Bar and NGOs form themost effective foundation for sustainable judicial reform. In Armenia, an initial effort of designing thejudicial reform concept was supported through the State Committee for Legal and Judicial Reform whichrepresented a wide spectrum of leaders from the executive, the Constitutional Court, the judiciary, theNational Assembly, the General Prosecutor's Office, the legal scholars, and the Yerevan State UniversityLaw School. During project preparation, all major counterparts continued being involved in discussionswith the Bank project team, and amongst themselves.
(iii) Judicial reform in any country is a long-term process. There is a need to prioritize judicial reformactivities in order to avoid overloading the judicial capacity to absorb the necessary changes. During thepreparation of the project, the Bank, the Government and the judiciary have agreed on specific priorityareas of the judicial reform which would be included in the project. Also, a careful planning of the courtadministration reform, as the most complex and challenging component of the project has been carriedunder the PHRD Grant provided by the Japanese Government.
(iv) Sustainability of judicial reform is linked to developing or strengthening institutional capacity ofjudicial institutions. One of the main focuses of the proposed project is an institutional development of theCCC, its Administrative Office, the Enforcement Service, and the Judicial Training Center.
(v) While comparative law experience is an extremely important source of guidance for legal and judicialprojects, it should be adapted to national legal systems and the particular requirements of the societyconcerned. In addition, the benefits from foreign experts who provide a comparative prospective should befused with knowledge of the local legal community --knowledge of the language, social norms and thesocioeconomic factors underpinning the country's political structure and legal traditions. This lesson hasbeen taken into account in designing specific programs under the project, actively using local professionalsin conducting assessments and preparatory works for the project and involvement of judges through theWorking Groups in selecting, using and supervising foreign and local experts.
(vi) Coordination among all concerned development institutions, multilateral and bilateral, is critical. Suchcoordination is important to avoid duplication of efforts, ensure consistent advice, and optimize the use ofavailable resources. During the preparation of the project, the Bank has conducted regular consultationswill all donors involved in the legal and judicial development work in Armenia, including USAID, ABACEELI, EU TACIS, GTZ, Soros Foundation, etc. This practice will be continued thorough the duration ofthe project. In addition, through developing a new public relations office within the judiciary under thepublic awareness component which, among other things, will coordinate with donor agencies, the projectwould contribute to a more effective donor cooperation in the judicial sector.
- 22 -
4. Indications of borrower commitment and ownership:
Over the last three years, the GOA has made a clear commitment to reforming its judiciary. The initial stepwas the preparation of a comprehensive concept which outlined the main directions and implementationtimetable of the judicial reform (Concept Paper). A high-level State Committee on the Judicial Reform wasestablished for the preparation of the Concept Paper.
In early 1998, the Bank carried out a Judicial Sector Assessment which outlined, inter alia, specificproposals on the structure of judicial institutions, court administration, status and appointment of judges,judicial training, etc. The Judicial Sector Assessment has been carried out in a truly participatory fashion,and the final report has significantly benefited from the input of various individuals and institutions. Evenmore important, the major recommendations of the Banks Judicial Sector Assessment were incorporated inthe new legislation governing the judicial system which was enacted in 1998 and became effective inJanuary 1999.
During that same period, the first blocks of a new institutional framework for the judiciary were laid down.In July 1998, the Court of Cassation, the highest body of the judiciary, was established. Around the samnetime, a new entity responsible for court administration -- the Council of Court Chairmen -- was established.The courts of general jurisdiction and appellate courts were formed and staffed in January 1999. A newEnforcement Service of Court Decisions was established under the MOJ in January 1999. The JudicialTraining Center was created in 1999.
The Government has also demonstrated its commitment to implement the judicial reform program byadopting a number of measures aimed at strengthening independence of the judiciary. These measuresincluded introduction of a new appointment procedures for judges which are based on specializedqualification exams, significant increase of judges' salaries, renovation of some court buildings. TheGovernment's commitment to further implementation of these measures and to the reform process ingeneral is confirmed in the Policy Letter provided to the Bank.
As it has been discussed earlier in this report, some structural changes are needed in the Council of Justicewhich would further distance the executive branch from the judiciary, particularly in the matters of judicialappointments, disciplinary proceedings and removal from office. Such changes require amendment toConstitutional provisions. The Constitutional Amendments Commission (Commission), established by thePresident, has prepared elaborate amendments to Chapter 6 "Judicial System" of the Constitution. It isanticipated that these amendments will be put on the national referendum in Fall of 2000. The prevailingview is that these amendments are necessary to ensure the consistency between the constitutional provisionsand the new laws on the judiciary enacted in spring of 1998, particularly, with respect to the provisions onthe composition of the Council of Justice, the role of the Procuracy in civil litigation, and on the process ofappointment and removal of judges from the office. More specifically, it is anticipated that theseamendments will change the composition and the functions of the Council of Justice to limit its membershipto judges and independent representatives (e.g. retired judges, legal scholars).
At the beginning of project preparation, the Bank team launched a broad consultation process whichincluded judges, government officials, members of the Parliament, law professors, legal scholars,representatives of NGOs and other stakeholders. A workshop organized during the Bank's identificationmission in December 1998 gathered all those representatives together and discussed the strategic goals andcurrent priorities of the judicial reform process, the objectives and tasks which should be handled by theproject and preliminary design of the project. This was followed up by the establishment of a ProjectSteering Committee and Working Groups for each. component for the preparation work. The Project
- 23 -
Steering Committee has been co-chaired by the Chairman of the CCC and the Minister of Justice. ThreeWorking Groups consisted of chairmen judges and two of MOJ officials. The Working Group membersclosely interacted with consultants, hired under the PHRD grant to prepare assessments for variouscomponents. They provided logistical and organizational assistance, as well as intellectual input. Judgeswere actively involved in conducting an assessment of the court administration and case managementsystems in Armenia. Such wide participation of judges in the project preparation strengthens thecommitment to the project by the judicial community.
5. Value added of Bank support in this project:
Over the last decade, the Bank has extended its developmental mandate to the legal and judicial area, andhas responded favorably to borrowing member countries' requests for technical assistance in their legal andjudicial reforn efforts. This reflects the acceptance by the international development community that aneffective and efficient judiciary, impartial both in fact and reputation, is an essential element ofcomprehensive development. This can also be attributed to a unique position of the World Bank, as afinancial institution with a developmental agenda and as a "knowledge bank", to support complex andlong-term reform efforts in legal and judicial areas, to provide "coalition building" support for such reformsand coordinate assistance between other bilateral and multilateral donors.
The Armenian authorities requested the Bank's support for judicial reform over two years ago. Severaloperations (e.g. SATAC I and SATAC II) included small components to address the most urgent needs ofthe ongoing reform process. The Judicial Sector Assessment Report, which was discussed with theGovemment in early 1998 was instrumental in defmning the priorities of the judicial reform process andidentifying the areas of assistance for the proposed project, as well as for intervention of the other donors.
E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)
1. Economic (see Annex 4):9' Cost benefit NPV=US$ million; ERR = % (see Annex 4)C Cost effectiveness* Other (specify)Development of an independent and efficient judiciary has a direct relevance to the proper functioning ofthe economy and the conduct of economic activities: inability to protect property rights, to enforcecontracts, high cost or unreasonable delays in such enforcement hinder the efficiency of economic discourseand thus have a negative impact on the economic development of a country.
2. Financial (see Annex 5):NPV=US$ million; FRR= % (see Annex 4)
Not applicable.
Fiscal Impact:
The recurrent costs to maintain the rehabilitated buildings and information technology purchased withcredit proceeds will need to be supported by a suitable Government budget allocation for the judiciary.
3. Technical:
Not applicable.
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4. Institutional:
4.1 Executing agencies:
The Ministry of Justice and the Council of Court Chairmen will be the two leading executing agencies.
4.2 Project management:
A PAC comprising of representatives of the Council of Court Chairmen, the Ministry of Justice, theMinistry of Finance and Economy, and GOA Staff has been established for overall project managementand to provide policy guidance and oversee project implementation activities.
Day to day project management will be the responsibility of the PIU. The PIU will be responsible for thecoordination of all project interventions, and for providing necessary support services (procurement ofgoods and services, financial control, monitoring of project activities, preparation of annual work plans,and reporting on status of project implementation).
4.3 Procurement issues:
The capacity of the PIU to conduct procurement has been assessed and the project was given an overallhigh risk rating. Details of the assessment and an agreed upon plan of actions and findings are included inAnnex 6.
4.4 Financial management issues:
Financial Management Capacity: The financial management capacity within Armenia has not been thesubject of a detailed review by the Association. Any weaknesses that may exist in the country's financialmanagement capacity have been mitigated by the use of a specialized PIU, for project preparation andimplementation, and drawing upon experience of projects of this nature. The main risks related to theproject's financial management system are as follows:
(i) Capacity of staff in the PIU. The PIU currently employs a full-time financial management specialistwhose responsibilities include maintaining accounts for the project preparation grant, project accounting,intemal controls and financial reporting. The PIU accounting staff will be further trained, as needed, andthis training will be provided as a part of the technical assistance for the project.
(ii) Capacity of accounting system to generate the agreed Project Management Reports (PMRs). The PIUis using an accounting software which is capable of generating the agreed PMRs. The PIU will hireconsultants as required to ensure that the PMRs will be produced starting from the period ending on March1, 2002.
(iii) Banking Arrangements / Special Account (SA). The PIU will open and maintain a Special Account(SA) in a commercial bank, acceptable to the Association, as well as a transit account in a localcommercial bank. In addition, the PIU will open an account in a local bank, where the Govemment'scontribution will be deposited. These accounts will be managed by the PIU. The total amount held in thetransit account will be limited to the equivalent of $5,000. The SA and transit accounts will be auditedannually and the results made available to the Bank.
The Bank will give special attention to the project financial management risks. The risks will be subject toa rigorous follow-up during the supervision missions.
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5. Environmental: Environmental Category: B (Partial Assessment)5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (includingconsultation and disclosure) and the significant issues and their treatment emerging from this analysis.
No major environmental issues are anticipated under the project given the mostly rehabilitation nature ofworks to be financed. One court house in Giumri region will be newly constructed.
In order to assist in the selection of the court rehabilitation program, a detailed assessment of courtbuildings was conducted to collect information on the existing conditions of the court buildings and on theimprovements needed. The assessment was financed by the PIIRD Grant and was carried out by a localArmenian firm. During the assessment, no significant negative environmental consequences have beenidentified since there are no issues of land acquisition, no areas of historic value or cultural heritage, noecologically protected areas, no ground water pumping sites, etc. which are affected by project works.
An Environmental Management Plan is included in the Operational Manual for the Project, and addressesthe issues relating to safety and health standards for construction and rehabilitation works which areconsistent with the Bank environmental assessment guidelines and the Armenia Environmental ImpactAssessment Law of 1995. For the Giumri court house which is located in the earthquake area, preliminarydesign and construction plans will be submitted to the Armenia Earthquake Engineering Center for theirreview and approval. For this new construction, no environmentally harmful materials will be used, inaccordance with Armenian law. For the rehabilitation works, it is not expected that contractors willencounter any asbestos containing materials. However, appropriate handling and disposal procedures willbe described in the technical specifications of the works, to allow safe handling and disposal in the eventasbestos is encountered in the course of demolition. In addition, all contracts would contain clausesrequiring the minimization of noise and dust during construction. The Bank would have the opportunity toverify the procedures through prior review of the terms of reference of the design consultants as well as thefinal design documents, including the technical specifications.
The Project will have positive environmental impact because rehabilitation of court houses will lead toimproved security, fire-life safety, accessibility and efficiency standards for court houses.
5.2 What are the main features of the EMP and are they adequate'?
The main features of the EMP are: (i) mitigation measures against negative impact of rehabilitation andconstruction works, including measures relating to noise and dust during reconstruction works, minimizingvegetation damage, safe handling and disposal of waste materials, conforming to seismic standards; (ii)responsibilities for implementing mitigation measures: PIIJ staff, particularly an Architect, and individualcontractors; (iii) monitoring requirements; and (iv) authorities responsible for monitoring and enforcementactivities.
5.3 For Category A and B projects, timeline and status of EA:Date of receipt of final draft: Not Applicable (see in 5.1 above on the
assessment carried out for the courtrehabilitation component)
5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EAreport on the environmental impacts and proposed environment management plan? Describe mechanismsof consultation that were used and which groups were consulted?
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The assessment for the court rehabilitation component included consultations with judges, Ministry ofJustice, Ministry of Finance and Economy, the Prime Minister's office and parliamentarians. Copies of theassessment report have been provided to all major stakeholders.
5.5 What mechanisms have been established to monitor and evaluate the impact of the project on theenvironment? Do the indicators reflect the objectives and results of the EMP?
The PIll technical staff, who is an architect, will be responsible for monitoring the mitigation plan. Thesupervision missions will follow-up on the appropriateness and success of the mitigation plan to counternegative environmental impacts (if any). If necessary, remedial actions will be proposed and adopted.
6. Social:6.1 Summarize key social issues relevant to the project objectives, and specify the project's socialdevelopment outcomes.
It has been widely accepted that rule of law, independence of the judiciary, due process, equality andnon-discrimination are becoming central concems of "development discourse". The project, by assisting inthe development of an independent, effective and accessible judiciary, would contribute to addressing thefollowing social issues in Armenia:
(i) better access of the population to justice: both in terms of physical accessibility (rehabilitation of somecourt houses in remote areas, improved reception areas in court buildings), affordability (the project wouldfinance a study on court fees and proposed forms of legal aid), and gender equity (through betterdissemination of legal information to women, specialized training for judges on gender issues, etc.);
(ii) more effective protection of citizens' rights and freedoms, including vulnerable groups of thepopulation (through reducing the time for judicial process, achieving more transparency for the judiciaryand eliminating sources for corruption);
(iii) better access for citizens to information about their legal rights and obligations and means for theirprotection (several programs under the public awareness component are aimed at this objective); and
(iv) contribution to environmentally sustainable development (the judicial system which effectively protectsproperty rights and rigorously enforce environmental laws and regulations is critically important forenvironmentally sustainable development).
6.2 Participatory Approach: How are key stakeholders participating in the project?
A workshop was held with key members of the judiciary, the legal profession, and the Government at theidentification stage to discuss the policy objectives, design and implementation arrangements for theproposed Project. As a result, a general consensus was reached on the proposed structure and componentsof the project, as well as on the role of different agencies and institutions, and of the judiciary itself, in thepreparation and implementation of the project. This practice was continued during further stages of projectpreparation through bilateral consultations with different stakeholders. Furthermore, representatives of thejudiciary, the MOJ and the legal profession are represented in all implementing agencies (e.g., PAC,Working Committees, Advisory Board) and therefore will be able to actively participate and benefit fromthe project.
6.3 How does the project involve consultations or collaboration with NGOs or other civil societyorganizations?
Main civil society organizations, involved in the judicial sector, such as the Association of Judges, BarAssociation, Young Lawyers Association, Union of Lawyers and Politologists, were consulted at all stages
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of project preparation. Their input was particularly used in designing the judicial training component andpublic awareness component of the project.
6.4 What institutional arrangements have been provided to ensure the project achieves its socialdevelopment outcomes?
An Advisory Board which includes some representatives of NGOs and mass media has been established forimplementing a public awareness component. The Advisory Board will be overseeing social developmentaspects of the project and will cooperate with other NGOs and community organizations in performing itstasks.
6.5 How will the project monitor performance in terms of social development outcomes?
Several public opinion surveys and court users surveys will be conducted during the life of the project toassess social impact of the project components.
7. Safeguard Policies:7.1 Do any of the following safeguard policies apply to the project?
.PWIOL.y Ap0plCSbilityl Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) O Yes El NoE Natural habitats (OP 4.04, HP 4.04, GP 4.04) El Yes O Nol Forestry (OP 4.36, G O4.361 E Yes 1 No
El Pest Management (OP 4.09) O Yes N NoL Cultural Property (OPN 11.03) OI Yes IZ NoL Indigenous Peoples (OD 4.20) El Yes 1 NoC Involuntary Resettlement (OD 4.30) El Yes M NoLI Safety of Dams (OP 4.37, BP 4.37) El Yes IZ NoI Projects in International Waters (OP 7.50. BP 7.,50. GP 7.50 LI Yes M NoIl Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) Li Yes M No
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.
The Environmental Management Plan has been included in the Operational Manual for the project. TheCredit Agreement also requires the Govemment and implementing agencies to ensure that proper mitigationmeasures will be taken in the course of reconstruction and rehabilitation of courthouses.
F. Sustainability and Risks
1. Sustainabiity:
Key issues for sustainability of the interventions contemplated under the project include: (i) the continuedpublic support for legal and judicial reform through a long-term program; (ii) adequate funding andprocedures for operation and maintenance of court infrastructure, and (iii) improved institutional capacityof the newly established agencies (such as the CCC, the Judicial Training Center, and the EnforcementService) which will be responsible for the continued implementation of judicial reform.
2. Critical Risks (reflecting assumptions in the fourth column of Annex 1):
Risk Risk Rating Risk Minimization Measure|From Outputs to Objective
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1. The judiciary does not overcome M 1. Strengthening of the institutional capacity ofadministrative (MOJ) and financial the CCC as a judicial self-governing body(Ministry of Finance and Economy)control of the executive branch 2. Introduction of a new budgetary planning and
financial management mechanism for courts
3. Carrying out an assessment of competenceand salary scale for judges and promotingrecommendations on adequate financialcompensation for judges (e.g. separate salaryscale from civil servants)
2. The judicial reform process does not M 1. Intensive discussions of the reform measuresenjoy consolidated support from the other and proposed project activities with all keybranches of government, legal players in the legislative, judicial and executiveprofessional community and general branches, legal professional community andpublic general public
From Components to Outputs1. The CCC fails to effectively plan and M 1. Strengthening of the institutional capacity ofcarry out court administration reform the CCC
2. Preparation of a masterplan for the courtadministration reform identifying priorities andto allocate scarce resources
2. Development of a functioning Judicial M 1. Assisting in the preparation of aTraining Center is delayed comprehensive strategy for the judicial training
and institutional support to the JTC
2. Intensive coordination with other donorsproviding assistance to the Judicial TrainingCenter
3. Reduction of budgetary allocation for M 1. Discussions and agreement with thethe judiciary as a result of the proposed Government on required budgetary allocationscredit for the judiciary for maintaining investments to
be financed under the project and to ensurefuture sustainability of those investments
Overall Risk Rating M
Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)
3. Possible Controversial Aspects:
No apparent controversial aspects at this stage.
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G. Main Credit Conditions
1. Effectiveness Condition
2. Other [classify according to covenant types used in the Legal Agreements.]
Disbursement Condition:
(a) Disbursement of credit funds for equipment for the JTC will be subject to receiving by theAssociation a satisfactory evidence that an acceptable organizational and management structure of the JTCis in place and the JTC has become fully operational.
Credit Covenants:
(b) The Government will maintain the PIU within the MOJ and the Working Groups (including anAdvisory Board for the Public Awareness component) for project components during the life of the project.(c) The Government will open the Project Account by January 31, 2001 and replenish thereafter on aquarterly basis to cover project expenses from the Government counterpart funding.(d) Procurement of goods, works and services for the project will be carried out in accordance with theBank's Procurement Guidelines, the provisions of the Credit Agreement and as outlined in Annex 6 of thePAD.(e) Not later than November 30 of each year, the PIU will fumish to the Bank the annual program forthe next year, including procurernent and financing plans, and will review these plans with the Bank beforeimplementing them.(f) The PIU will submit to the Bank quarterly Project Progress Reports not later than 45 days afterthe end of the quarter outlining progress made in the implementation of each project component, as well asthe problems encountered and how they will be addressed.(g) The Government and the Bank will carry out a mid-term review by September 30, 2002, and willmake necessary adjustments in the Project as recommended by the review.(h) The Government will prepare, not later that 6 months after the Closing Date, a plan for the futureoperation of the Project activities, and the Government's input into the Implementation Completion Report,both of which will be reviewed with the Bank.(i) By June 30, 2001, the Government will submnit to the parliament an amendment to the Law on theJudiciary of 1998, providing the CCC with supervisory authority over administrative affairs of courts at alllevels.(j) By December 31, 2001, the Government will submit to the parliament a draft law regulatingclassification, systematization and registration procedures for Armenian laws and regulations.(k) The Government will ensure that proper mitigating measures, according to the EnvironmentalManagement Plan, will be taken in the course of rehabilitation and construction of court houses.(1) The Government will maintain a financial management system acceptable to the Bank and havethe financial records, accounts and financial statements for each fiscal year audited and submit a certifiedaudit report to the Bank within six months after the end of each fiscal year and also at the closing of theproject.
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H. Readiness for Implementation
D 1. a) The engineering design documents for the first year's activities are complete and ready for the startof project implementation.
1 1. b) Not applicable.
O 2. The procurement documents for the first year's activities are complete and ready for the start ofproject implementation.
1 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactoryquality.
[ 4. The following items are lacking and are discussed under loan conditions (Section G):
1. Compliance with Bank Policies
Z 1. This project complies with all applicable Bank policies.O 2. The following exceptions to Bank policies are recommended for approval. The project complies with
all other applicable Bank policies.
Irina L. Kichigina. Friedrich PeloschekTeam Leader Sector ManagerlDirector Country Manager/Director
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Annex 1: Project Design SummaryARMENIA: Judicial Reform Project
iHierarch o bfjecat ives htt:tw i & _________________
Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission)The proposed project willsupport the main CASobjective, i.e. to foster therapid development of theprivate sector by promotingfurther structural reforms,strengthening the financialsystem and the legal andregulatory framework.Development of anindependent, efficient, andeffective judiciary has a directrelevance to the properfunctioning of the economyand the conduct of economicactivities: inability to protectproperty rights, to enforceprivate contracts or high costsor unreasonable delays in suchenforcement hinder theefficiency of economicdiscourse and thus have anegative impact on theeconomic development of acountry.
Project Development Outcome I Impact Project reports: (from Objective to Goal)Objective: Indicators:The objective of the project is 1. Increased financial and Survey of public opinion. Continued GOA comnitmentto assist in the development of administrative autonomy of Project progress reports. to market oriented reformsan independent, accessible and the judiciary Budgetary allocations for theefficient judiciary in Armenia judiciary.which is essential to 2. Extent of increase in usergovernance, rule of law and confidence and improvedinvestment climate, judicial services
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Key PerformanceHierarchy of Objectives Indicators Monitoring & Evaluation Critical Assumptions
Output from each Output Indicators: Project reports: (from Outputs to Objective)component:(1) Institutional capacity of 1.1 New organizational and Project reports and 1.1 Continued GOA andthe CCC and Administrative management structure of the supervision public support to judicialoffice improved CCC is established, and the reforms
CCC is fully operational 1.2 The judicial branch isgiven more authority in theappointment of judges anddisciplinary matters
(2) Improvement of court 2.1 Uniform standards and Progress reports andadministration and case procedures for the preparation supervisionmanagement procedures of court's budget and financial
management of courts aredesigned and implemented2.2 Standards for case flow aredeveloped and adopted by thejudiciary2.3 Twenty-one courts areprovided with computerequipment and technology
(3) Renovated court facilities 3.1 Thirteen court buildings MOJ 3.1 Adequate budgetwhich would improve working are rehabilitated Progress reports and allocations are provided forconditions for judges, provide 3.2 Security devices are supervision maintenance of buildings.dignified atmosphere for court installed in court buildings 3.2 Thirteen courts arehearings and enhance security and security design standards adequately refurbishedfor judges, witnesses and are implemented for 20litigants buildings
3.3 Six pilot court houses arerehabilitated (and one courthouse is constructed) inaccordance with enhanceddesign standards andrefurbished
(4) Improved enforcement of 4.1 About 130 bailiffs are CCC, MOJ Bailiffs fulfill their functionscourt decisions trained Progress reports and in professional and ethical
4.2 An organizational supervision fashionstructure of the EnforcementDepartment is finalized
(5) Enhanced professional 5.1 About 110 judges and 60 Surveys Sustainable trainingskills and efficiency of judges court administrators are Progress reports and mechanism for judges andand court personnel trained supervision court officials is established
5.2 Training programs aresuccessfully rated by traineesS.3 The time spent by judgeson administrative and otherroutine matters is decreased by30%
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(6) Improved institutional 6.1 JTC's organizationalcapacity of the Judicial structure is defined; trainersTraining Center are trained; curriculum is
developed; training evaluationsystem is set up
(7) Improved access to legal 7.1 Unified classification MOJ, CCC Competitive and competentinformation by legal system for laws and Progress reports and private sector of electronicprofessionals and general regulations is developed supervision legal databases is developedpublic 7.2 An electronic legal
database of the MOJ isestablished7.3 Judges have guaranteedreliable access to laws andregulations
(8) Improved image of the 8.1 Increased use of courts by Progress reports andjudiciary, legally educated the population by at least 30% supervisionpopulation and trained mass 8.2 TV and radio programs onmedia legal and judicial issues are
successfully rated8.3 About 25 journalists aretrained
Project Components I Inputs: (budget for each Project reports: (from Components toSub-components: component) Outputs)(1) Strengthening US$2.6 million Supervision reports 1.1 Additional legislativeInstitutional Capacity of the changes are adopted toJudiciary enhance judicial governance.
Judicial governance 1.2 New court administrationCourt adrninistration and case managementCase management procedures are accepted andCourt automation implemented by judges and
court personnel1.3 Adequate and reliabletelephone network is in place
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(2) Court Infrastructure US$5.6 million Supervision reports 2.1 Ministry of Finance andRehabilitation Economy timely and* Rehabilitation and adequately provides therefurbishing of seven pilot counterpart funding for thecourt-houses rehabilitation program* Rehabilitation of 13 2.2 Enhanced design andcourt-houses construction standards for* Development of new design courthouses are developed,and space planning standards endorsed and approved by thestandards (including security respective authorities.standards) for constructionand rehabilitation ofcourthouses
(3) Improving the US$0.5 million Supervision reports Legislation governingEnforcement of Court enforcement of court decisionsDecisions is fully developed- Institutional strengtheningof the enforcement service
Training of EnforcementService staff* Automation of theEnforcement Service
(4) Training of Judges and US$0.5 million Supervision reports 4.1 The judicial communityCourt Personnel consolidates its efforts* Institutional support to the developing a comprehensive,
JTC long-term strategy for theCurriculum Development judicial training
* Training of Trainers 4.2 The JTC is adequatelyEquipment staffed and equipped
(5) Dissemination of Legal US$0.7 million Supervision reports An adequate legal frameworkInformation for collection, classification* Assistance in codification and dissemination of legaland systematization of laws; information is establishedmaintaining authoritativetexts of official legal acts* Development of a strategyfor facilitating private andcompetitive dissemination oflegal information. Development of anelectronic legal database
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(6) Public awareness and US$0.7 million Supervision reports, public Armenian National Televisionpublic education campaign opinion surveys provides prime time TV air. Development of a PR for the projectstrategy for the judiciary* TV/radio production andairing* Specialized training for PRstaff and journalists* Seminars on legal issues forpublic in marzes* Publication of brochures andbooks on legal issues* Public opinion surveys
(7) Project Management US$0.5 million Supervision reports PIU is fully staffed andoperational
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Annex 2: Project DescriptionARMENIA: Judicial Reform Project
By Component:
Project Component I - US$2.63 millionStrengthening the Institutional Capacity of the Judiciary
This component aims at: (i) development of self-governing bodies of the judiciary (specifically, the CCCand its Administrative Office); (ii) development of a modem court administration system: (iii) design andimplementation of new case management models; and (iv) automation of courts.
Sub-component A. Judicial Governance
Institutional Strengthening of the Council of Court Chairmen (CCC) and its Administrative Office
During the limited period of its existence, the CCC has adopted its Charter, organized a number ofsessions, took a lead in providing training to newly appointed judges and engaged in other importantactivities. However, it still must establish itself as a fully operational, self-governing body of the judiciary.The CCC needs to (i) fully develop its plenary authority over the administrative affairs of the judiciary; (ii)organize a system of Working Committees which would be responsible for developing common policies andprocedures in specific areas of court administration (e.g. budgeting and financing of courts, humanresources development, maintaining court facilities, court automation, training of judges and courtpersonnel, etc.); (iii) develop a system of providing and receiving reports from individual courts andchairmen; (iv) design a position of a chief executive officer of the judiciary; and (v) develop a strategy ofinteracting with the public, mass media and other branches of government.
Accomplishment of these tasks will be supported by the project through the following activities: (i)provision of technical assistance in organizing the CCC as a governing body; (ii) training for heads of
Working Committees and other staff of the CCC; and (iii) publication of the CCC newsletter or similarpublication accessible to all judges and which covers judicial administrative matters.
At present, the Head of the Administrative Office directs employees reporting to him who are assigned tooversee the budget, personnel, and training components of the office and supervises directly several otherstaff members who work on the generalization of judicial practice program. These staff members appear toperform largely ministerial functions, e.g. assemble budget submissions or enter personnel information intoa data processing system. They do not appear to have been entrusted with responsibility for suggestingpolicy or developing programs in any regular manner to the CCC.
The Administrative Office, in order to fulfill its functions of providing administrative support to the CCCand continued monitoring of implementation of the CCC's decisions, needs reorganization and training. Forthis purpose, the project will finance: (i) provision of technical assistance for organizational development ofthe Administrative Office (establishing divisional responsibilities, clear job descriptions, a strategic plan forthe development of the Administrative Office, etc.); (ii) training for the Administrative Office staff inspecific areas, e.g. court financing, court procurement, facilities, case recording, as well as training ingeneral judicial administration topics; and (iii) provision of necessary equipment and software to automatethe main functions of the Administrative Office.
Enhancing the role of judges in judicial self-governance
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The corps of judges now has little to do with the governance of the judiciary. The project would support theexpansion of the role of judges and judges' active involvement in developing accountability mechanisms forthe judiciary. This would be achieved through: (i) conducting a study on evaluation of judicial perfornancemodels; and (ii) provision of technical assistance in the development of the Code of Ethics for Judges.
Improvement of the legislative framework for the judiciary
The laws that have provided a legislative foundation for the establishment of the new court system requirefurther improvement. Active work is underway on the preparation and discussion of certain constitutionalamendments relating to the judicial branch. nd disadvantages demonstrated during the last five-year period,the role of the Constitutional Court and the Council of Justice in the overall legal system and other systemicissues. In order to support legislative activities in the area of judicial reform and provide the Armeniandrafters with the advantages of comparative legislative analysis, the project will finance advisory servicesand study tours for this sub-component.
Sub-component B. Court Administration
With the reorganization of the Armenian court system in 1997, appointment of new judges in January1999, and growing demand for judicial remedies over the last couple of years, the judiciary has becomeoverwhelmed by the new demand for its services. Delays and backlogs are now commonplace, especially incriminal cases.
The program supported by the project aims at development of a modern court administration system, with aparticular focus on court financing; efficient allocation and use of court resources (i.e. judges,administrators, registrars, assistants and other personnel); and design of the reliable and meaningfulstatistical information system.
The following activities will be financed under this sub-component:
Court financing: (i) design of uniform financial management procedures in courts (budgeting, accounting,auditing) and design and publication of standard forms and guidelines; and (ii) training of court financialofficers, court chairmen and staff of the Administrative Office in court financing.
Efficient organization of judges and court personnel work: (i) development of job descriptions, standardrecruitment procedures and performance evaluation forms for court staff, including court administrators,judicial assistants and registrars; (ii) training of court administrators and judicial assistants, particularly innew areas of their responsibilities; (iii) carrying out a time utilization study; (iv) development of theAdministrative Office' capacity in general management analysis and planning in the judicial system.
Statistics: (i) assistance in re-designing data collection strategies and instruments (under the CCCleadership); (ii) establishment of the Office of Court Statistics under the CCC; (iii) development of writteninstructions for data collection, auditing and reporting; (iv) redesigning docket numbering system anddevelopment of a new classification of cases; and (v) seminars for Chiefs of Staff, registrars and othercourt staff in court statistics.
Sub-component C. Case management
The case management system existing in Armenia, while generally adequate at the present caseload volume
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and level of complexity, would not conform to the increasing demand for judicial services. Recent court
data shows that expansion of the case volume is already underway. Some courts are beginning to operate at
the margins of their capacity under the present case management system. The number of complex cases will
almost certainly rise as the market economy takes hold and will require a different case management
approach since the present system cannot deal with them adequately.
The project would assist in the development of an effective case management system which would ensure
timely and effective processing of cases by the judicial system. The following activities will be financed: (i)
assistance in developing new civil case management procedures and publication of case processing
manuals; (ii) training of judges and other court personnel in case management; and (iii) designing special
systems and procedures for criminal cases (e.g. case numbering system, expedited issuing arrest and search
warrant, issuing sentencing orders, pre-sentencing reports, information on pre-trial detention, bail policies,
etc.) and publishing of case processing manuals.
Sub-component D. Court automation
A few Armenian courts currently have some automation, especially in Yerevan. For the most part, it is used
to support word processing needs, but in at least two courts, it is being used to do limited case
management.
Assistance in the development of an automation program for the court system would be provided in the
following areas: (i) provision of computer equipment, software and technology to 21 courts of general
jurisdiction, three Appellate Courts and the Cassation Court for the purpose of maintaining statistical
records, transmitting decisions, providing electronic mail, and introducing case management; (ii) computer
training for judges and court personnel; and (iii) carrying out an assessment for the use of other technology
in courts (e.g. audio and voice recording and computer-aided transcription in making courts records; use of
video and telecommunications for video records of court proceedings, depositions).
Project Component 2 - US$5.66 millionInfrastructure Rehabilitation
Successful implementation of judicial reform cannot be achieved unless the court facilities reflect the
requirements of the new judicial procedures being introduced by reform, and unless the court buildings are
in a condition that would contribute to respect for the judiciary.
The objective of the component is not to assist in minimal rehabilitation of all court buildings in Armenia
but rather to ensure rehabilitation of court facilities in a way that would make a sound contribution to
overall judicial reform. The task is not only to improve working conditions for judges and court personnel,
but to enhance security, ensure efficient planning of the facilities, provide better access to the courts, ensure
energy efficient use of the building systems, etc.
Currently, the existing court buildings in Armenia are in deplorable condition due to lack of maintenance
during the past decades. In addition, a number of court facilities were destroyed or severely damaged
during the 1988 earthquake. In order to assist in the selection of the court rehabilitation program, a survey
was conducted to collect information on the existing condition of the court buildings and to provide an
assessment of the improvements needed. The results of the study indicate that in most courts, rehabilitation
is essential simply for the courts to function. In others, court rehabilitation has started but works have
ceased due to of lack of funds. In addition, several court buildings share space with the Police and
Prosecutor's function, one of the constraints on judicial independence that the project seeks to end. Based
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on this information and taking into account the caseload of the respective courts and the objective of thiscomponent, 7 pilot courts and 13 other regional courts and the Court of Cassation were selected forinclusion in the Infrastructure Rehabilitation Component.
The component will finance:
(i) Rehabilitation of 6 (six) pilot courts and construction of 1 (one) new pilot court building, both tomeet enhanced standards of security, fire-life safety, accessibility and efficiency. These courts are expectedto demonstrate the functioning of modem courthouses following international standards. They will serve theobjective of the independent, transparent and efficient judiciary. The court buildings included in the pilotsare:
1. Appellate Court on Criminal and Military Cases in Yerevan2. Appellate Court on Civil Cases in Yerevan3. Appellate Court on Economic Cases in Yerevan4. First Instance Court of Malatia-Sebastia Communities of Yerevan5. First Instance Court of Center and Nork-Marash Communities of Yerevan6. Shirak Marz First Instance Court - Giumri Court House (new construction)7. Lori Marz First Instance Court - Vanadzor Court House
(ii) Rehabilitation of 13 (thirteen) other non-pilot courts to meet minimum standards for an adequatelyfunctioning courthouse. The other courts are:
1. Court of Cassation2. First Instance Court of Shangavit Community in Yerevan3. First Instance Court of Ajapnyak and Davtashen Communities of Yerevan4. First Instance Court of Ereboni and Noubarashen Communities of Yerevan5. First Instance Court of Arabkir and Kanaker-Zeytun Communities of Yerevan6. First Instance Court of Avan and Nor-Nork Communities of Yerevan7. Lori Marz First Instance Court -- Stepanavan Court House8. Gherkounik Marz First Instance Court -- Sevan Court House9. Aragatsotni Marz First Instance Court -- Ashtarak Court House10. Ararat Marz First Instance Court -- Artashat Court House11. Ararat Marz First Instance Court -- Masis Court House12. Tavush First Instance Court -- Ijevan Court House13. Armavir First Instance Court -- Echmiadzin Court House
Design, engineering and supervision costs are to be covered under the project. The work will be carried outby local architects and engineers assisted by international court infrastructure consultants. The existingdesigns of the courts for which works have stopped due to lack of funds will be reviewed and improved ifnecessary.
(iii) Supply of modem court equipment and furniture for the seven pilot courts, in order to ensure thatrehabilitated courts are fully operational and are used to their full potential. This component includespurchasing of goods, including but not limited to, audio, security and fire-life safety devices, bullet proofglass, metal detectors, modem court room furniture, etc.
(iv) Development of design standards and comparative analysis of international and Armenian(according to SNIP) space planning standards. Based on this analysis, a list of Armenian standards for
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court designs will be proposed. The standards will be based on a clear set of programmatic instructions in
accordance with the new concepts of judicial reform in Armenia. The activity will produce prototype
schematic plans for the various court types in the Armenian system, it will indicate functional relationshipsand basic design guidelines and area requirements. This information will constitute a "Schematic Design
Manual" that can be revised based on the experience gained from use of the courts. The Working Group on
Court Rehabilitation will develop clear programmatic instructions for the translation of judicial reform into
physical form.
Project Component 3 - US$ 0.53 millionTraining of Judges and Court Personnel
This component focuses on providing assistance to the Judicial Training Center (JTC) which was
established in 1999. In this area, the Bank is closely coordinating with other donors, particularly the
program of EU-TACIS. Although the TACIS program is not yet at the implementation stage, it foresees
assistance in: (i) defining training subjects for judges and court personnel; (ii) developing training
techniques and methodologies; (iii) curriculum development; (iv) design of monitoring and evaluation
processes for judicial training; (v) conducting training of trainers program; and (vi) provision of a modest
amount of equipment and teaching materials for the Center.
The project will assist in establishing the JTC tbrough: (i) provision of technical assistance and training for
developing the management structure of the JTC; (ii) organization of a conference with participation of
judges, government officials and representatives of the legal community for the discussion and endorsement
of a strategic approach for the development of continuing judicial education in Armenia; (iii) assistance in
curriculum development (since the TACIS program would not cover all the training subjects within itscurricula development component, the project would focus on selective subjects, e.g. court administration
and case management, communication skills, ethical standards, etc.); (iv) provision of required equipment
for the Center.
Project Component 4 - US$0.59 millionImproving Enforcement of Court Decisions
Without proper and timely enforcement of rendered court decisions due process cannot be ensured. The
previous enforcement system was inefficient; contributing to the low image of the judiciary as a whole. In
the course of the judicial reform, a new system for enforcement of civil judgments has been introduced in
Armenia: a new Enforcement Service was established under the MOJ; the legislative framework
governing the activities of the new service and enforcement mechanism has been radically changed; new
staff have been hired.
This component aims at: (i) institutional strengthening of the Enforcement Service; (ii) professionaldevelopment of the Enforcement Service staff; and (iii) automation of the Enforcement Service.
Sub-component A. Institutional Strengthening of the Enforcement Service
Currently the Enforcement Service is a centralized system with Headquarters, Yerevan and Marz offices.
An assessment of the new legislative framework, organizational structure and functions of the new agency
has been carried out with the assistance of German experts financed from SATAC I. The design of the
component takes into account conclusions and recommendations of the assessment report.
The project will support: (i) provision of technical assistance for the organizational development of the
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Enforcement Service; (ii) development of case processing techniques; (iii) establishment of the publicrelations department and training of its staff; and (iv) advisory services to support necessary drafting.
Sub-component B. Training of Staff of the Enforcement Service
Currently the Enforcement Service employs some 300 bailiffs. The majority of the staff joined the Servicein 1999. Even though most of the new appointees have basic legal education, they lack knowledge andexperience required for carrying out new tasks imposed on the Enforcement Service. Moreover, specializedtraining in areas such as financial management or banking is completely lacking. The project will finance:(i) training of the Enforcement Service staff on issues of substantive law, as well as on ethics anddisciplinary regulations; and (ii) specialized training of selected Enforcement Service staff and managers inaccounting and financial management, banking and finance, international transactions.
Sub-component C. Automation of the Enforcement Service
The Enforcement Service lacks necessary equipment to improve work efficiency. The available computersare used for simple word processing. The project will finance: (i) provision of computer equipment,software and technology to the 10 Marz offices, Yerevan office and the Enforcement Service Headquarters;and (ii) provision of copying, scanning and facsimile equipment to the 10 Marz offices, Yerevan office andthe Enforcement Service Headquarters.
Project Component 5 - US$0.69 millionLegal Information
There are several important dimensions to the legal information framework: classification,registration/collection, dissemination to government entities, courts and public dissemination andpublication. In Armenia, all the mentioned areas need significant improvements in order to develop a newlegal information regime that can support ongoing legal and judicial reform in the country. The project willprovide assistance in: (i) strengthening the institutional and operational capacity of agencies responsible formaintaining authoritative texts of official legal materials, their systematization and codification; (ii)developing an electronic legal database; (iii) developing a Government strategy for facilitating competitiveand effective dissemination of legal information; and (iv) improving access to essential legal information byjudges and other legal professionals.
Sub-component A. Strengthening of institutional and operational capacity of the Ministry of Justicein classification, systematization and collection/registration of legal information
By law, the MOJ is entrusted with registering all legislative and normative acts in the Republic of Armenia.The Department of Systematization of Legislation of the MOJ is responsible for this function. Presently,the registration of laws and other legal acts is carried out manually by means of collecting printed texts oflaws and regulations by the Department staff. There is no unified electronic database of laws andregulations used for registration purposes. The need of such electronic database is obvious: whileprivately-developed databases may, over time, emerge as major suppliers of particular types of legalinformation to the public or business community, it is important for the government and citizens to have acomplete, accurate, and stable registry of official legal acts as verified by a legally-sanctioned agency suchas the MOJ.
Furthermore, there is no unified classification system operative in Armenia at present. Several differentclassification systems are in use by various government agencies and private legal databases, some of them
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based on the former Soviet-em classification regime. Therefore, large numbers of normative acts in new
files of law (e.g., bankruptcy, securities law, etc.) become increasingly hard for paper-based indexing
systems to absorb. The lack of unified classification for legislation also infringes comparative analysis of
legal acts, and updating of the existing laws and regulations to make them consistent with the newly
adopted ones.
The project will address the above deficiencies through assistance in the following areas: (i) institutional
strengthening and automation of the Department of Systematization of Legislation of the MOJ and
assistance to the MOJ in developing a unified classification system for laws and regulations; (ii) provision
of equipment, software and training for development of an electronic database of all legal and normative
acts operated by the MOJ; and (iii) assistance in the development of an effective legal framework for
classification, systematization and registration of laws in the Republic of Armenia.
Sub-component B. Development of a comprehensive strategy for effective and competitivedissemination of information
In order to significantly improve the accuracy and uniformity of legal information and its timely
accessibility to all users -- public and private -- it is important for the Government to develop a
comprehensive strategy of dissemination of legal infornation to specific users and the public in general.
There is a wide range of options concerning the transmission of legal information by the government to
various users -- in both electronic and paper form. The development of a strategy should analyze the role ofinformation in society, the role of government in fostering the dissemination of such information in society,
the nature and pace of technological and economic changes occurring in the country, and how public andprivate organizations and individuals will react to various policy and technical solutions. Such analysis
should also include current financial realities, including government and private sources of investment, as
well as donor funds.
The project will support technical assistance to the Government for the development of such strategy andits broad discussion with the judicial and legal community in the country.
Sub-component C. Improving access to legal information by courts
The courts are in great need for legal information -- both substantive laws and court decisions. The
explosion of new legal acts in the context of a transition economy has placed severe information demands
on the courts, which is dangerously reliant on paper information that is often quite out-of-date. The
situation is even more aggravated in distant regions where printed information about new laws and
regulations comes very slowly. The courts lack funds for obtaining published codes, commentaries, or even
Official Bulletins published by the government print house. Access to private legal databases is hampered
by huge deficiencies in technology equipment available to courts.
Once a unified electronic database is developed in the MOJ, courts would receive guaranteed and reliable
access to such database. In the meantime, the project will finance provision of essential legal texts to
courts.
Project Component 6 - US$0.75 millionPublic Awareness and Public Education Campaign
A survey of public awareness and public attitude towards the legal and judicial system in Armenia was
conducted for the preparation of this component. The findings of the survey served as the basis for refining
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messages and setting priorities in choosing the programmatic activities for the component. The componentshould accomplish a qualitative breakthrough in public attitudes toward the rule of law in Armenia. Amongthe objectives of the public awareness component is the information flow to the public at large aboutpositive new developments and explanation why they are beneficial, or why people should get involved inthe reform process.
The public awareness component will include the following activities to be financed by the credit:
Sub-component A. Development of a comprehensive public relations (PR) strategy for the judiciaryand establishment of a PR office within the CCC
The judicial reform program in Armenia puts a great emphasis on transparency, openness andaccountability of the judiciary. While many governmental agencies (including the MOJ) andlaw-enforcement agencies have their own public relations departments, the Armenian judiciary is laggingbehind in this respect. Courts traditionally have very limited interactions with other government agencies,mass media, professional organizations or the public. Court decisions or court statistics are not published,and little information is available about individual judges and their service in the office.
The Project will assist in developing a comprehensive public relations strategy for the judiciary andbuilding up PR institutional capacity within the CCC as a "designated spokesman" of the judiciary.
Sub-component B. Journalism training
Despite their critical role, Armenia's journalists are not adequately trained in legal issues. As a result,media coverage of the courts and legal issues is inadequate. The project will finance organization ofjournalism training in the following areas: training on specific legal topics; seminar meetings and topicalbriefings with leaders of the legal reform process, members of the parliament, politicians, and lawyers tocover policy related issues; professional skills training; share knowledge and resources in the field of mediacoverage of legal affairs; lobby for better access to sources of information and wider coverage of legalissues in media; conduct discussions of direct problems affecting the coverage of legal issues.
Sub-component C. Dissemination of legal information to the population
The project will support improved access of the population to legal information (including the work ofcourts) through the following channels: (i) TV and radio programs; (ii) seminars in local communitiescovering such topics as citizens' rights and obligations, means of legal protection, the work of courts,access to legal aid, etc.; and (iii) publication of popular brochures on legal issues.
Sub-component D. Judicial surveys
The survey conducted during project preparation primarily sought to evaluate the present level of publicawareness and public attitude towards laws and legal institutions in the country, and to design specificprograms under the project. At least two similar sociological surveys will be conducted duringimplementation of the project which will include broader coverage of respondents and focus groups,particularly, the court users. These follow-up surveys will also be used for monitoring the effectiveness ofthe project interventions during its implementation.
Project Component 7 - US$0.53 millionProject Management
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Day-to-day project implementation will be carried out by a Project Implementation Unit (PIU) locatedwithin the MOJ. The PIU comprises a Director, procurement specialist(s), an FMS specialist, anaccountant, an architect, public awareness component coordinator and some administrative personnel (e.g.a secretary/translator, driver, etc.). In performing its functions, the PIU will:
- provide technical assistance and support to the Working Groups and other agencies involved inproject implementation;
- carry out procurement for the project activities;- maintain project accounts and project financial management system;- disseminate project-related information;- conduct the project's mid-term review and completion reviews;- report directly to the PAC on a regular basis; and- provide information on project implementation and interact withother govemment agencies, NGOs and the public.
The project will finance operational and logistical assistance to the PIU.
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AUG 21 '0O 05:e9PM WORLD BANK ARMENIA P 3Z3
Attachment
,3R";.JE MIN&tS1ER
Deai Ms O'C onnor
The attachld letter describes the Government of Armenia's program of-actions,objectives asnd policies designed to refbrm thc judicial system of the Rcpublic ofArmenia. We are lookiing forward to IDA's approval of the proposed Judicial ReformProject in an amount of USO) t 1,4 millioin which would supporr the implemnentation ofsaid piograln.
Sinc-c-ely,
A. MARGARYAJNI
Ms Judy Q'Con3orCouuntry Director for Armenia.Europe and Central AiiaRkegionTnternationatl Deyelopment Association
Yoevr.ra, Rpt4>:ic _x &nvlxn
REPUBLIC OF ARMENIA
Statement of Policy and Objectives of the Judicial ReformJune 2000
A. Background: Vision and Objectives of the Judicial Reform
1. In mid 1997, under the leadership of the State Commission on Judicial and LegalReforrns co-chaired by the Prime Minister and the Chairman of the Constitutional Court,a Concept Paper of the Legal and Judicial Reform of the Republic of Armenia wasdeveloped (hereinafter the Concept Paper). The Concept Paper stated that the mainobjective of the judicial/legal reform program is the establishment of an independentjudiciary that:
(a) plays an important role in the state based on the rule of law and separation of powersprinciples;
(b) guarantees development of a free democratic society and protection of human rights;and
(c) supports effective market relations and private sector development.
2. The Concept Paper covered a broad range of reform actions in the judicial sector,including:
(a) reorganization of the court system in Armenia;(b) reform of the Procuracy;(c) establishment of a new legislative framework for the judiciary;(d) transfer of the correctional and penitentiary institutions from the jurisdiction of the
Interior Ministry to the Ministry of Justice;(e) reform of the service responsible for the enforcement of court judgments;(f) reform of the Ministry of Justice;(g) developing a new system ofjudicial training; and(h) launching public education and public awareness campaigns in the area of legal and
judicial reform.
3. The Concept Paper has also outlined a phased approach towards implementation ofthe reform program: the first phase focusing primarily on enacting new legislation, andthe second phase - creation of new judicial institutions and reorganization of courts.
4. Since 1997, a considerable progress has already been made in reforming thejudicial system of Armenia. First, a number of fundamental laws have been adopted andcame into force which provided a legislative framework for the establishment of a newindependent judiciary. These laws include the Law on the Council of Justice; the Law onthe Judiciary; the Law on Status of Judges; the Law on Procuracy; the Law on Advocacy;the Law on Mediation Courts; the Law on Compulsory Enforcement of Judgements; the
2
Law on the Service for the Compulsory Enforcement of Judgments; the CriminalProcedural Code and Civil Procedural Code. The Law on the Judiciary and the Law onthe Status of Judges introduced a life tenure for judges, adopted new principles ofappointment, disciplining procedures and removal of judges, provided for the creation ofself-governing judicial bodies and secured other important rights and immunities forjudges protecting them from undue influence.
5. In accordance with the above laws, a new institutional framework for the judiciarywas established:
(a) The Council of Justice (was established pursuant to the Armenian Constitution of1995) is the body which is entrusted with the appointment and removal of judges andprosecutors, as well as the disciplinary actions against judges and prosecutors. TheCouncil of Justice is headed by the President of Armenia with the Minister of Justiceand the Prosecutor General as the two Deputy Chairpersons. It also consists of 14other members: 9 judges, 2 academics and 3 prosecutors.
(b) A new three layer court system in which the first instance courts of generaljurisdiction hear all criminal, economic and criminal cases was created. The threeappellate courts - the Court on Civil Cases, the Court on Economic Cases and theCourt on Criminal and Military Cases - form the second layer. The highest courtwithin the new system is the Court of Cassation that considers appeals from thecourts of the first and second instances. The Court of Cassation consists of twochambers - the Chamber on Criminal and Military Cases and the Chamber on CivilCases.
(c) Council of Court Chairmen was established to deal with a wide range of managementand supervisory responsibilities, including administration of courts, developing andimplementing uniform court administration, personnel, budgeting, case managementpolicies, judicial training, and assessing on an ongoing basis the status ofadministration of justice in Armenia. Transfer of these functions from the Ministry ofJustice to this new body which consists of court chairmen and chaired by the ChiefJustice of the Republic of Armenia, demonstrated a true commitment of theGovernment to promoting independence of the judiciary.
(d) The new Enforcement Department was established under the Ministry of Justice inorder to improve enforcement of court decisions. The Department has a staff about300 people, which includes the central department in Yerevan and the regionalbranches in marzes. The Government has undertaken a set of serious measures toprovide adequate staffing, necessary equipment and support to the new Department.Over the last year, a number of enforced court decisions has already rose sharply.
6. The main challenge over the next few years will be to implement the new laws andstrengthen the capacity of newly established institutions.
B. Current Phase of the Reform Program
3
The following key elements constitute the current phase of the judicial reformprogram in Armenia:
1. New principles and procedures for selection of judges, conducting disciplinaryproceedings and removal of judges from the office.
The new procedures have been established in the Law on the Status of Judges. Inorder to further strengthen independence of judges and transparency in the process oftheir appointment and approval, the Government recognizes the need to reduce the role ofthe executive branch in the process of nomination of judges, initiating disciplinaryproceedings against them and removal from the office. For this purpose, it is proposed tochange the composition of the Council of Justice to ensure fair representation of judgesand legal scholars in the Council of Justice and elimination of any supervision/overseeingfunctions of the Council over courts. The process of conducting qualification exams forjudges will also be further improved to ensure full transparency and professionalism.
2. Development of new forms of judicial self-governance.
Institutional strengthening of the Council of Court Chairnen (CCC) is seen as oneof the priority measures of the current phase of the judicial reform. In order to fulfill itsfunctions of administration of the judicial system, the CCC and its Administrative Officehave to become well-organized, sufficiently staffed and equipped structures.
Another important task of strengthening judicial independence is elimination ofinfluence of prosecutors' offices on courts. The legacy of the past, when prosecutors hadthe right to overrule judges' decisions, could initiate criminal proceedings against judgeswithout any intervention of judicial bodies, and had numerous other means to effectivelyinfluence judges' rulings and actions, has to be overcome. The role of the Prosecutor'sOffice in civil litigation has already been significantly reduced and will be eventuallyeliminated. The proposed amendments to the Constitution of 1995 also contemplateelimination of the Prosecutor's Office representation in the Council of Justice. The Lawon the Status of Judges provides that judges cannot be arrested or prosecuted withoutconsent of the Council of Justice.
3. Financial independence of courts.
The Government recognizes that the judicial reform program cannot besuccessfully implemented if the proposed reform measures are not supported by adequatefunding. The reform has already introduced some radical changes in the court financingsystem. Financing of courts is now separated from the Ministry of Justice and lawenforcement agencies. Each court has its budget item which is reflected in the budgetlaw. In 1999, the CCC has received exclusive authority to prepare a budgetary proposalfor the judiciary and administer the use of budgetary resources. Judges' salaries wereincreased in 1999.
However, consistent and reliable financing of the judiciary remains to be aproblem. Recognizing that the reform efforts might fail if the judiciary continues to faceconstant budgetary constraints, the Government confirns its commitment to make all
4
possible efforts to ensure sufficient allocations for courts within the state budget whichcould realistically satisfy growing needs of the judiciary, including upgrading courtsinfrastructure, provision of necessary equipment, financing maintenance costs, supportingtraining programs for court personnel, etc.
4. Accessibility to justice.
An important element of the judicial reform program in Armenia is an improvedaccess to justice for all groups of the population. Since living standards of the populationhave decreased during the transitional period, for many people court fees and high feesfor legal services, particularly for private attorneys, became a barrier to use of courts. TheGovernment attaches great importance to ensuring equal access of all citizens to justice,including an establishment of legal aid system in the country. Improvement of publicaccess to justice should also be ensured through improved court facilities; simplifiedfiling and registration of cases procedures; improvement in provisions of legal services;reduction of processing delays; better dissemination of legal information and publiceducation, facilitated access to justice for vulnerable groups, etc.
5. High professionalism of judges and court personnel.
The new judiciary cannot be established without a radical change in the level ofprofessionalism and integrity of judges and other court personnel. A new JudicialTraining Center has been established under the auspices of the CCC to provide continuededucation to judges and court personnel. Development of a comprehensive judicialtraining program which would become a basis for the work of the Judicial TrainingCenter is of critical importance. The Govermnent also recognizes that primary legaleducation ( at the university level) needs significant improvement. In this respect, it isequally important to improve and upgrade the curricula and teaching methods andpractices in the Law Faculty of the Yerevan State University, as the only state law schoolin the country, as well as to ensure that newly emerging private law schools provideadequate, i.e. up to the approved standards, education to their graduates.
C. Bank-financed Judicial Reform Project
1. To support the on going judicial reform in the country, the Government ofArmenia has requested World Bank's assistance through a stand-alone operation. Thepreparation of the Judicial Reform Project (hereinafter Project) started in late 1998 andthe Project was appraised in May 2000. The Government of Armenia received a PHRDGrant from the Government of Japan which was used for conducting technical studies,analytical assessments, and surveys of public opinion for the preparation of the project.
2. The Project consists of seven components:
(i) Strengthening institutional capacity of the judiciary and increasing efficiency ofcourts through improved court administration and case management procedures and courtautomation;
5
(ii) Court infrastructure rehabilitation;(iii) Training of judges and court personnel (particularly, development of aninstitutional base for continuing judicial education);(iv) Improving the enforcement of court decisions;(v) Systematization, codification and dissemination of legal information;(vi) Public awareness and public education campaign; and(vii) Project Management.
3. The project enjoys full support of the Government and the President's Office,representatives of the judiciary, law faculty, and legal professionals. The design of theproject has been extensively discussed by all the stakeholders and has been prepared-withvery active participation of judges.
4. The Ministry of Justice and the CCC will be the two leading entities responsible forproject implementation. Project Administration Council (hereinafter PAC) which is nowmandated for all World Bank projects has been established. The PAC will be chaired bythe Minister of Justice and consist of eight members, including one from the Ministry ofFinance and Economy, one from the Prime-Minister's office, the Head of theEnforcement Service, the PIU Director, and three representatives of the judiciary,including the Chairman of the CCC. The PAC will be responsible for policy decisionmaking, monitoring overall implementation of the project, final tender evaluation, andannual planning.
5. The Working Groups, chaired by judges and MOJ officials, will providespecialized/professional input into implementation process of particular components.They will be primarily responsible for drafting and clearing TORs, as well as providinginputs and supervising the work of the consultants. This should ensure full ownership ofthe Project by the judiciary and the MOJ.
6. A Project Implementation Unit, headed by the Project Director, would beestablished under the PAC and would be responsible for day to day project management.
D. Other support
1. The Government of Armenia has engaged other international donors in supportingits program for legal and judicial reform:
(a) USAID (through IRIS, AMEX, ABA CEELI, Chemonics) has provided assistance indrafting of commercial legislation (Civil Code, securities legislation, company laws,public procurement, etc.); assistance in drafting of judicial legislation (Laws onAdvocates Services, on the Status of Judges); short-term training of judges, courtadministrators, and procurators; study tours for judges, court and Enforcement Serviceofficials; assistance in the preparation of qualification examinations for judges;continuing legal education for the Yerevan State University Law School faculty;institutional development of the Bar Association and the Armenian Judges Association;assistance to the CCC on court administration and case management.
6
(b) EU-TA CIS has provided grant funding to support and financing for the organizationand implementation of a comprehensive judicial training program through theestablishment of the Judicial Training Center, development of commentaries, and publicawareness.
(c) The Government of Federal Republic of Germany has provided assistance indrafting the legislation on enforcement of court decisions; preparation of a master planfor the enforcement scheme; assistance to the newly created CCC; provision ofequipment to the Appellate Court on Economic Cases.
(d) Soros Foundation (Open Society Institute, COLPI) has supported publication ofnew textbooks for the Yerevan State University Law School; training of courtadministrators; provision ofpro bono advocacy and other legal services.
(e) The UK Department for International Development is providing support forprovision of pro bono advocacy and other legal services.
The Bank-financed Judicial Reform Project has been designed in close cooperationwith the above donor organizations, in order to maximize the use of donor funds forimplementation of core reform measures.
Annex 3: Estimated Project Costs
ARMENIA: Judicial Reform Project
Local Foreign TotalProjet Cost By Component US $million US $million US $mihon
A. Judicial Governance 0.06 2.40 2.46
B. Infrastructure Rehabilitation 2.90 2.10 5.00
C. Judicial Training 0.10 0.40 0.50
D. Improving Enforcement of Court Decisions 0.05 0.50 0.55
E. Legal Information 0.00 0.64 0.64
F. Public Awareness Campaign 0.24 0.47 0.71
G. Project Management (PIU) 0.40 0.15 0.55
Total Baseline Cost 3.75 6.66 10.41Physical Contingencies 0.00Price Contingencies 0.15 0.84 0.99
Total Project Costs 3.90 7.50 11.40
Total Financing Required 3.90 7.50 11.40
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Annex 4
ARMENIA: Judicial Reform ProjectNOT APPLICABLE
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Annex 5: Financial Summary
ARMENIA: Judicial Reform Project
Years Ending12131
Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7Total Financing RequiredProject CostsInvestment Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0Recurrent Costs 0.0 0.1 0.2 0.2 0.2 0.0 0.0
Total Project Costs 0.0 0.1 0.2 0.2 0.2 0.0 0.0
Total Financing 0.0 0.1 0.2 0.2 0.2 0.0 0.0
FinancingIBRD/IDA 0.0 1.8 2.2 3.8 3.5 0.0 0.0Government 0.2 0.1 0.1 0.1 0.1 0.0 0.0
Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Co-financiers 0.0 0.0 0.0 0.0 0.0 0.0 0.0User Fees/Beneficiaries 0.0 0.0 0.0 0.0 0.0 0.0 0.0Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total Project Financing 0.2 1.9 2.3 3.9 3.6 0.0 0.0
Main assumptions:
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Annex 6: Procurement and Disbursement ArrangementsARMENIA: Judicial Reform Project
Procurement
Civil works and goods under IDA-financed components shall be procured in accordance with the Bank'sGuidelines: "Procurement under IBRD Loans and IDA Credits", dated January 1995, revised in Januaryand August 1996, September 1997 and January 1999. Consultants' Services financed from the proceeds ofthe credit shall be procured in accordance with the Bank's Guidelines: "Selection and Employment ofConsultants by World Bank Borrowers", dated January 1997, revised September 1997 and January 1999.The World Bank's Standard Bidding Documents and Standard Request for Proposal will be used. A projectlaunch workshop will be held in November 2000.
1. Civil WorksCivil works for two of the pilot courthouses (Yerevan Appeals Court and Giumri) estimated to costUS$600,000 equivalent or more will be procured using International Competitive Bidding (ICB). Theapproximate aggregate amount is US$1.35 million. National Competitive Bidding (NCB) will be used forthe remainder of the courthouse infrastructure rehabilitation, estimated to cost less than US$600,000 up toan aggregate amount of US$2.94 million. Four of the eleven NCB procurements will be comprised of lotsin order to capitalize on timing and geographic proximity. Since there are no large or complex workcontracts in this project the qualification method will be post qualification.
2. GoodsGoods (approximately US$2.7 million) consisting of courtroom and office fumiture, computer and officeequipment, as well as training materials and supplies will be grouped to the extent possible and consideringproject objectives, in package sizes that will encourage competitive bidding. The following methods ofprocurement will be followed:
(i) International Competitive Bidding (ICB) procedures will be used for contracts above $100,000equivalent for a total amount of approximately US$2,189,000 million.
(ii) International Shopping (IS) procedures will be used for the procurement of courtroom and officefurniture equipment and software for an aggregate amount of approximately US$407,000. The PIUwill obtain at least three quotations from two different countries.
(iii) National Shopping (NS). These procedures, by obtaining at least three quotations from nationalfirms, will be used for contracts estimated to cost less than US$50,000 equivalent up to an aggregateamount of approximately US$126,000.
3. Selection Procedures for Consulting ServicesContracts for Consulting Services and Training (including study tours) will be packaged to combine relatedskills and services, in order to make them attractive and increase competition as well as to reduce thenumber of contracts to be managed by the PIU. The following methods of procurement will be followed:
(i) Quality and Cost-Based Selection (QCBS) procedures will be used for contracting consultantservices relating to design and technical specification preparation for pilot courthouses, design andimplementation of a new court administration system and large assignments related to the publicawareness. Approximate aggregate amount US$2.14 million equivalent.
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(ii) Consultant Qualification (CQ) (below US$100,000) procedures will be used for contractingservices related mostly to the infrastructure rehabilitation component (expertise, design and technicalspecifications) and also for development of legal brochures and radio program production andassistance in curiculum development and training in computers and financial systems and legalinformation components. Approximate aggregate amount US$1.27 million equivalent.
(iii) Individual Consultants (IC) will be hired in accordance with Section V of the Guidelines.Individual consultants will be used for specialized technical assistance in legal drafting, constructionsupervision, and other small assignments. Consultants will be selected based on individual'squalifications and with the Bank's prior approval. Approximate aggregate amount US$150,000equivalent.
(iv) Least-Cost Selection is envisioned for only one package for international construction supervisionfor all the courts. The value of the contract is approximately US$210,000.
(v) Two Architectural Design Competitions will be held for the "Center" and "Giumri" courthousesowing to the fact that they are in historic locations and of great importance. It has been agreed that theBank would review the RFP's used for conducting both design competitions to bring them in line withthe principles of the Bank Guidelines and with widely used procedures for architectural designcompetitions by such institutions as the ALA and UNESCO. It has been agreed that the Bank wouldpay the prize money of the winning architectural firm. The Government will be responsible for fundingany other costs that may be associated with organizing the competition
4. Incremental Operating CostsThe PIU staff salaries, office materials and supplies, communication and fuel expenses will be financedunder the Credit for the duration of the project (US$530,250) while office space will be provided by theGovernment as a contribution to overall operating expenses.
5. Notification of Business OpportunitiesA General Procurement Notice (GPN) will be published in Development Business by October 31, 2000 atthe latest and will be annually updated. For large-value consultant contracts, invitation for bids will beadvertised in Development Business and a national newspaper, and in the case of NCB procurements, in amajor local newspaper.
Procurement methods (Table A)
Table A: Project Costs by Procurement Arrangements(US$ million equivalent)
Procurement Method_Expenditure Category ICBCB B Mehd N.B.F. Total Cost
1. Works 1.49 3.27 0.00 0.00 4.76(1.35) (2.94) (0.00) (0.00) (4.29)
2. Goods 2.20 0.00 0.53 0.32 3.05(2.20) (0.00) (0.52) (0.00) (2.72)
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3. Services 0.00 0.00 3.86 0.00 3.86____________________ (0.00) (0.00) (3.86) (0.00) (3.86)
4. Project Management 0.00 0.00 0.53 0.00 0.53(0.00) (0.00) (0.53) (0.00) (0.53)
Total 3.69 3.27 4.92 0.32 12.20(3.55) (2.94) (4.91) (0.00) (11.40)
Figures in parenthesis are the amounts to be financed by the IDA Credit. All costs include contingencies
2 Includes civil works and goods to be procured through national competitive bidding and internationaland national shopping; consulting services, training and study tours to be contracted through selectionprocedures of QCBS, CQ, LC, and IC; and incremental operating costs related to managing the project,including PlU staff salaries, office supplies, communication costs and office maintenance and utilities.
- 51 -
Table Al: Consultant Selection Arrangements (optional)(US$ million equivalent)
Consultant Selection MethodServices
Expenditure QcS Q8S SF8 LCS Co Other N.B.F. Total Cost*Category ._ _ _______
A. Firms 2.14 0.00 0.00 0.21 1.26 0.00 0.00 3.61
(2.14) (0.00) (0.00) (0.21) (1.26) (0.00) (0.00) (3.61)B. Individuals 0.00 0.00 0.00 0.00 0.00 0.25 0.00 0.25
_ (0.00) (0.00) (0.00) (0.00) (0.00) (0.25) (0.00) (0.25)Total 2.14 0.00 0.00 0.21 1.26 0.25 0.00 3.86
(2.14) (0.00) (0.00) (0.21) (1.26) (0.25) (0.00) (3.86)
1\ Including contingencies
Note: QCBS = Quality- and Cost-Based SelectionQBS = Quality-based SelectionSFB = Selection under a Fixed BudgetLCS = Least-Cost SelectionCQ = Selection Based on Consultants' QualificationsOther = Selection of individual consultants (per Section V of Consultants Guidelines),Commercial Practices, etc.
N.B.F. = Not Bank-financedFigures in parenthesis are the amounts to be financed by the Bank Credit.
- 52 -
Prior review thresholds (Table B)
Table B: Thresholds for Procurement Methods and Prior Review
Contract V:lue 'Cftrat S uet WtoThreshold ~~Procuremenit Prior RevIw
Expenditure Category ( tonds) Methodl (U$$ Smilions)1. Works > 600,000 ICB All / $1.34
<600,000 NCB First 2 contracts / $0.75
2. Goods > 100,000 ICB All / $2.18<100,000 IS First Two<50,000 NS None
3. Services Firms QCBS/LCS >$100,000/$2.14Firms CQ TOR only
Individuals Section V. TOR only
Total value of contracts subject to prior review: $5,259,375
Overall Procurement Risk Assessment
High
Frequency of procurement supervision missions proposed: One every 3 months (includes specialprocurement supervision for post-review/audits)
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ARMENIA JUDICLL REFORM PROJECTProcurement Capacity AssessmentSummary of Findings and Actions
-Asses . . .ti-
Item Assessed Null Po P .i W Fair Av Hij i D E d(a) LegalA spects I _ _ _ __ _ _ __ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _
(i) Laws & X The new draft X Bank Review of the Under review.Regulations Procurement Law new draft CPAR in
(which has passed Procurement Law 2001.the first reading by andParliament) omits recommendations forthe inclusion of appropriateappropriate amendments; fullmechanisms for CPARcomplaintresolution.
(ii) NCB X No standard bidding X These deficiencies Under review.Procedures documents; no clear can be addressed
qualification through amendmentscriteria; no clear to the new draftguidance on the Procurement lawamount of bid and which is currentlyperformance with Armeniansecurities. Lack of Parliament.understanding of For Bank-financedConflict of Interest projects, the PIU willaspects use the ECA
Region's sampleNCB biddingdocuments andevaluation report
_______ _ _____ ______ formats.(iii) Intemal X The Project X The Operational By effective-codes and Operational Manual Manual will be ness.manuals will include a Code reviewed by the
of Ethics and other Bank and commentsregulations on incorporated into theconduct of final version.
______ employees.
(b) Proc.Cycle Mgmt.(i) General X Xhandling(ii) X X The PIU will followProcurement the Procurement Planplanning agreed at Appraisal
(May 2000) and willalso prepare detailedaction plans for eachprocurement
__________________ ______ ______ ______ package.
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(ii) Legal _X Since the PIU will Xassistance be under the
auspices of theMinistry ofJustice, it willhave access tolegal advice.
(iii) Technical X Xandadministrativecontrols _ _ _ __ _ _ _ _ _ _ _ _
(iv) Code of X A Code of Ethics X The PIU will Byethics will be included in prepare a Code of Effective-
the Operational Ethics for its staff. ness.Manual.
(v) Anti- X Neither the current X Same remarks as Seecorruption Procurement for public commentsinitiatives Decree nor the procurement against
new draft against item (iv) item l.aProcurement Law above. above.contain anyprovisions on anti-corruption aspects.
(e) Recordkeeping(i) Public X Xnotices(ii) Bidding X Xdocuments(iii) Bid X Xopeninginformation(iv) Bid X Xevaluationreports(v) Formal X Xappeals andoutcomes(vi) Signed X Xcontractdocuments(vii) Claims X Xand disputeresolutionrecords(viii) - X XComprehensivedisbursementdata _
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Item Assessed Null Poor 1Aair . .Mj 1 k A. i .
(1) Staffing X X If needed as project As needed.undergoesimplementation, addone more qualifiedand experiencedProcurementSpecialist andprovide training
(g) General X XProcurementEnvironment(i) Promoting a X The existing X Make specific Sameculture of legislation and the provisions regarding remarks asaccountability new draft accountability in the against
Procurement Law new draft item a. Ido not contain any Procurement Law above.specific provisionson accountabilityof individuals forprocurement
.______ decisions.(ii) Reputation X No procurement Xof procurement corps exists incorps Armenia.(iii) Salary X PIU salary X Armenia should This is astructure structures are initiate steps to long term
mandated by the create a program.Government and procurement cadre Howeverare non- under the civil the trainingcompetitive with service; initiate of procure-the private sector. training courses in ment staffIt is difficult to international in the Govt.recruit and keep procurement at the Ministriescapable staff. national universities and Depart-
and also prepare a mentstraining program for could beexisting undertakenprocurement staff in immediate-various ministries. Iv
(iv) Freedom X The proposed X Introduce conflict offrom political Judicial Reform interest laws andinterference Project is a very ethical standards for
political, high public service.visibility project Strictly follow alland many parties World Bankwill be interested Guidelines relatedin using the project to procurement.for their own
_______ _______ _______ _______ ._ _ purposes.
- 56 -
te Assessed Null toor Nh it ltar M*WC1k.S.. w Ave. ., ; A P sd
(v) Existence of X Capable X See remarks against Sameexperienced individuals are item (iii) above remarks asand capable choosing againststaff employment in the item (iii)
private sector due aboveto the lack of aninterestingremunerationpackage offered byPIUs.
(vi) Clear X Xwrittenstandards anddelegation ofauthority(vii) Sound X Generally Armenia X Financial 1999-2000budget/ still follows the managementfinancial FSU financial specialists shouldsystems structure and review the system
practices which are and suggestnot acceptable financial reforms.under Bankprojects.. The PIU is however
required to followthe financial andaccountingrequirements of theBank for Bank-financed projects.
(h) Private XSectorAssessment(i) General X X There is a generalefficiency and lack of managementpredictability skills in engineering
consulting industry.(ii) X XTransparency(iii) Quality of X Xcontract mgmt.(iv) General X Xreputation
- 57 -
Prior Review Thresholds Proposed for Normal Investment Projects Overall Risk AssessmentGoods US$ Above $100,000(equivalent) AveageWorks US$ Above $600,000(equivalent) High XConsulting Above $100,000 for firms and US $50,000 for individuals Low(equivalent)Post Review Ratio: One in five contractsFrequency of procurement supervision missions proposed: Once every 3 Form prepared by: Frances Rosenthal,months. The supervision missions should include a procurement specialist Operations Analyst, LEGLRespecially during the first two years of the Judicial Refonn Project Signature: signed by Els Hinderdael, Seniorimplementation. The procurement specialist should conduct thorough ex-post Procurement Specialist, ECSIN/PAS Accreditedreviews and should continue providing guidance and support to the procurement Staff Assigned to the projectunit in the PIU. The PIU plans to establish a computerized project procurement Date: June 12, 2000system.Comments: See General Infornation and Summary
6. Action Plan for Strengthening Agency's Capacity to Implement Project Procurement
Based on the analysis of both the agency's procurement capacity and the information gathered, the followingrecommendations are made to continue improving their capacity to undertake procurement:
(i) Procurement Specialist - the individual who is already hired by the PIU has undergone
training on goods procurement in Turin, Italy, and has attended the World Bank Procurement
Seminar in Yerevan. However, he still requires additional training in civil works which will be a
priority as soon as the project becomes effective.
(ii) Additional Procurement Specialist: The PIU may appoint an additional procurement specialist
if warranted by the volume of work. The procurement specialist should be thoroughly familiar
with the Bank's Procurement Guidelines and procedures and should preferably have 2-3 years
experience in Bank-financed procurement, especially in civil works of similar nature, and
consulting services.
(iii) Procurement Training of Existing Staff: The Procurement Unit has a Technical Specialist
(Architect) who should be provided basic procurement related training to assist in the increasedvolume of procurement activities related to the Judicial Reform Project as well as in the long term
interests of the PIU.
(iv) Project Launch Workshop: The project launch workshop for the new project should be
conducted before project effectiveness.
(v) As a first task, have the PIU prepare the Operational Manual.
Thresholds generally differ by country and project. Consult OD 11.04 "Review of ProcurementDocumentation" and contact the Regional Procurement Adviser for guidance.
- 58 -
Disbursement
Allocation of credit proceeds (Table C)
Table C: Allocation of Credit Proceeds
Expenditure Cateory Amrountriin US$million Financing PercentgleCivil Works 4.29 90%Goods 2.72 100% of foreign expenditures, 100% of
local expenditures (ex-factory cost) and90% of expenditures of other items
procured locally
Consultant Services and training 3.86 100%including study tours and workshops
Incremental Operating Cost of the 0.53 100%PIU, including audit costs
Total Project Costs 11.40
Total 11.40
Use of statements of expenditures (SOEs):
Project funds will be initially disbursed under the Bank's established procedures, including Statements ofExpenditure (SOEs). A move to PMR-based disbursements will be made at the mutual agreement of theGovernment and the Bank, and will be considered once the PIU is familiar with the project's monitoringaspects and is considered able to produce sufficiently timely and reliable project management information.A change to PMR-based disbursements will be considered by September 30, 2002 (the project's mid-termreview).
Withdrawal applications would be fully documented, except for expenditures under:(a) civil works under contracts not exceeding US$600,000 equivalent;(b) goods under contracts not exceeding US$100,000 equivalent;(c) services of consulting firms under contracts not exceeding US$100,000 equivalent;(d) services of individual consultants under contracts not exceeding $50,000 equivalent;(e) training(f) operating costs of the PIU.
Documentation supporting the SOEs will be retained by the PIU and will be made available for review byBank supervision missions and auditors.
Special account:To expedite disbursements, the Borrower would establish, maintain and operate, under terms andconditions acceptable to IDA, a Special Account for the PIU, in US Dollars, in a commercial bankacceptable to IDA. Arrangements for the opening of the Special Account have been discussed with theBorrower during Negotiations. Payment of eligible expenditures (civil works, goods, services, operatingcosts and the refinancing of the PPF) may be made by the PIU out of the Special Account. The authorizedallocation is $500,000. The initial deposit into the Special Account will be $350,000, until the aggregate
- 59 -
amount of withdrawals from the Credit Account plus the total amount of all outstanding special
commitments entered into by IDA shall be equal to or exceed the equivalent of US$2.0 million. TheSpecial Account would be replenished at least on a quarterly basis or when the undisbursed balance falls
below an amount equal to 50 percent or less of the initial deposit, whichever occurs first. Replenishmentapplications will be submitted on a monthly basis and will be accompanied by full documentation,including monthly bank statements of the Special Account, for all items except those eligible for
disbursement on the basis of SOEs. These applications would be fully documented, except in the casewhere disbursements on the basis of Statements of Expenditure (SOEs) or Project Management Reports
(PMRs) are permitted, and would be supported by a reconciliation statement and bank statements. All otherapplications for direct payment or issuance of Special Commitments must be for an amount not less than20 percent of the Special Account allocation.
The PIU will also open a project account into which a share of the Government's contributions will bedeposited every year. An initial deposit of the Government's counterpart funds in the amount of US$
75,000 will be made on January 31, 2001. Thereafter, the amount deposited by the Government shall not
be less than US$ 75,000 for each semi-annual period. This amount shall be deposited no later than June 15
and December 15 of each year.
Project Financial Management
Financial Management; Responsibility for financial management of the project will rest with the newlycreated Project Implementation Unit (PIU). A financial management specialist (accountant) is employed bythe PIU. During Negotiations, a time-bound financial management action plan was agreed to remedyexisting deficiencies. More information on the project's financial management arrangements and theproject's flow of funds is found in the Project Operational Manual (POM).
Financial Management Capacity - Financial Management Risks: The financial management capacitywithin Armenia has not been the subject of a detailed review by the Association. Any weaknesses that mayexist in the country's financial management capacity have been mitigated by the use of a specialized ProjectImplementing Unit (PIU), for project preparation and implementation, and drawing upon experience ofprojects of this nature. The main risks related to the project's financial management system are as follows:
(i) Capacity of staff in the PIU. The PIU currently employs a full-time financial management specialistwhose responsibilities include maintaining accounts for the project preparation grant, project accounting,internal controls and financial reporting. The PIU accounting staff will be further trained, as needed, andthis training will be provided as a part of the technical assistance for the project.
(ii) Capacity of accounting system to generate the agreed Project Management Reports (PMRs). The PIUis using an accounting software which capable of generating the agreed PMRs. The PIU will hireconsultants as required to ensure that the PMRs will be produced starting from the period ending on March1, 2002.
(iii) Banking Arrangements / Special Account (SA). The PIU will open and maintain a Special Account(SA) in a commercial bank, acceptable to the Association, as well as a transit account in a localcommercial bank. In addition, the PIU will open an account in a local bank, where the Government'scontribution will be deposited. These accounts will be managed by the PIU. The total amount held in thetransit account will be limited to the equivalent of $5,000. The SA and transit accounts will be auditedannually and the results made available to the Bank.
- 60 -
The Bank will give special attention to the project financial management risks. The risks will be subject toa rigorous follow-up during the supervision missions.
Project Management Reports (PMRs): Management-oriented PMRs will be used for project monitoringand supervision. The formats of the PMRs (Cash Model) were agreed during Negotiations and areincluded in the Operational Manual. The PIU will produce a full set of PMRs for every calendar quarterthroughout the life of the project beginning with the period ending on March 1, 2002. However, the PMvRsshowing the project's sources and uses of funds (PMR 1A) and the project's Special Account Statement(PMR 1 E) will be produced from project effectiveness and the four procurement management reports(PMRs 3A, 3B, 3C and 3D) will be produced within six months of project effectiveness.
Disbursements: Project funds will be initially disbursed under the Association's established procedures,including Statements of Expenditure (SOEs). A move to PMR-based disbursements will be made at themutual agreement of the Government and the Association and will be considered once the PIU is familiarwith the project's monitoring aspects and is considered able to produce sufficiently timely and reliableproject management information. A change to PMR-based disbursements will be considered by September30, 2002 (the project's mid-term review).
Audit Arrangements: External audits by independent private auditors acceptable to the Association and onterms of reference acceptable to the Association will be procured by the PIU through Least-Cost Selection.Annual audited financial statements of the Project will be provided to the Bank within 6 months after theend of each fiscal year and also at the closing of the project. The contract for the audit will be extendedfrom year-to-year with the same auditor, subject to satisfactory performance. The cost of the audit will befinanced from the proceeds of the Credit an incremental operating cost.
- 61 -
Procurement Plan______
PI,OT COURSTS
Rd,Oka,fApp.0 -ofY -oo, I cm) ICB F0i. I 57i 650,370 15,A7.01 154 -01 15-Moy-O1 30.26-00 31Jol I 31-Ag-01 I5.0oy131 3aS-50,1 D. 02(002
Rd326 ofApp11( ,2 Coot fo (20 1cmo 8975
SiN I,ooo Coo ofMgM~-26001Io,os81o (digo do) I CW52 NCB P500 27SD 310,550 I-N-NO0 I 1D-0 I-.13-CO 15-2.01 15-100.01 15-M-k-Os 31-M.-t 15I-AP-OI O~0
Los 5-Is Fos Im-~s (5-so- VOSOS0
C-OS (Ho I (7(3 NCB 15- 1 2W5,I0 32775 1 Os.-ES a 26.05 5W-0I 15-Pds-015I-Mb-OS I5-Ap,-01 30.04005 15-MoOI N-v2001
Cos -0745 N CoNM soiloC - - Yoroo 2 IWO NCB P-0 I I 250,000 287,500 I1J0.11 I-Fds.I 1.5000 15-M.fr a 5-A040 a 15-Moy-Ol 31-M501"I-JoDol p20
3Osko1- F17-S h-oos Cool- G-, Coos H00 2 CV5 ICB P-o I 600,00 60000 .5,0001 15-
OP-OS 15-Ap-01 31-M*1I 3W01bO 31-181-01 5 15-MoO s-y-l Ap,2003
NON-PILOT COURTS
IsO fio0s Coo.fl . "As 8NO-Nsk C(0oo03i. - Y-sss (d.-igs d-5) I (V/b NCB Pr,- I 300 345,00 15.5,03 13-Od-00 15.00.0 30.N-00, 31-D.03 31-18-11 15-20-11 25-05,0 Ao-2901
I CW71 NCR P00. I 350,0100 40200 15.Ocs-EO 15-Nw-EO 1S.,b-N-O 31-Oso-E 31 1-01 28-03,01 15-5,0001 314A-2,5- 505.2001
4~~~s,5,i MOO 13001 o~~~~00Coo(- 04000k Coo, lAos, __LI'I___0_00
Coi Ms F/s h-oos Coos -&0oNs'o CIoo hoso I (75- NCB P00 I 600,00 069000 15-1 00-E 15-Oso-l 15-D-ME 31-J.001 28-k"t-0 31-M.-Ol S 13-A0o 30-AOp,-Il N-ov.0
M10 ,-Mo FOsS h(,oosOCh -5S- Coo H.-h 2 00( NCR P58 5 9 2,00 155-1001 15-5005,155-00.05 314A-1,0- 30.Ap0-OS 31-Moy-01 15-1-ssE 30-0010 13-2001
2 CWOI NCR P00 1 230,00 264,0D0 M5-PR"! 31-M.5-01 31-M.5-OS 15-Moy01 155-20001 15-Ju-l.01 31-W]-O 15-A.00I Sp,-2R5
A0-- NbOlAo 0000- Coo - A.o,io Coo HMooIsMOO 15,D
2 CWII NCR 000 250,000 207,500 15-
Op-OS 15-M,oy01 1S5-M~0 30-los-0S 31-J61-01 35-0510 153.50, 30-So Apo-32D02
Rd.boSiho0-ofCuo-s CooS0.00 80
I-o 1,000Cm,doESSI-g'0 150(OuyOfYOL2.050 27,D
3 CW,8-1 NCR P00 I 400, OP I3SJs-US 15-500-M1 15-000 314-NbS 30-Ap-0C2 3I-M.s-112 15-100-11 3W-()sl APo-20032
Fi-boSosCos -. A,sokooSD2600CooNouO fY -oo LaS I 58030 23Q0300
F/so kNooso Cosos O(A.-2650081K losoon Cooosoosos ~~~~ ~~Los2 200,500 230-307
T-osOFsohs,,ao Coos -5 I soS b-OsH 3 CW13 NCR Ps. I 83000 92,000 15-Nb-O2 15-Ap,-12 15-AI,-OS 31-My.y-O 30A-0,o12 31-J.1-012 15,-A,1 31A-Ao11 M.y-200
SUBTOTAL NON-PILO COURS 1,750,000 2,012,500
1532TAL ALL SNIRASTRUSCI7J RKFSAR0LTTAflON: 3,732400 4.2M237
(lR.)Oir-R Fosiso, 5-o psl Pa. Coo s)boloos 1.05,030) 3 1S PM-s I 5(1000 551000 I 3(I30.0 30-00-E 30-IJsoE 304.-01 55-505,0 15-5.-01 1A -15 2001
OIR) OIRdo F-odo fiC F300hW8.oPfiN Cos b, I.Jodo0 81h55 3 1s 15(0 I 50.0( 55,301 -10 14 -Jul-03 15-261-0 15- N/A 1~5- 13-1W130- 31-130-3 Fd~050-
/3R) J00ls doslo .si d-o 21 100h) 2 70 550 45400 49,5W0 ij,-.M0 I.26412 15-26403 15-5.50 NVA I5-0.y0 15(260-O2 31-00-03 D-203
OIR) Cosoos roso fo P6 Coos 3 IS 05-S 1 05,53W 00450 1-1,m0 IW-MuE 15-M6-113 1&tW N/A 15-So'0 15-00, 35-0,0 1s-2102
111R) O0ss F50iso- fi P1oo Colo (Neqos &Ms osSo bosulo 2 50/ 154 5 45.00 49.503 1.2s.0 I-265-O 1s-A.l-O S -A..- N/A 15-00-OS 3 1--0 F8s20
(SRI 0ssio ,,J-psoO OCoosSooo , 545500/0. 3 1(33 P- dos S 410,000 I-Ap-ES 15-N*-ES 31-MopES, 15-38103 15-AWT03 l5-Sq-0 30Ss 5-13,.11544 PO,-2(004
(PA) F03los OfI7SICoo 10lS. 401156108o I 34q505 1 40000 4,4X N/A N/A N/A I N/A N/A N/A N/A N/VA N/A
(JG) rF a0pooo .iN OS.woo So AosooOf/20p4 P. )- is Pd.s- I 0 0 599000 1I-MOS 15-03001 15.50030 1 ,,0 15-1*-os15-6 30.26-011 31-265-01 00-2001
/1)M rrFq04o,oho . 4 -u sOsoooOosf g-9 y,ss.ho 3 ICR 55-os I 5(1140 9910500 I-Mb-oS 15-Op41 I-ooO 15-A 26.2 15-261-02 15-A..o.0 31-Aug-S 15-Sq,-0 1D05
n03 A.50Oisf0u,. &*,oboSosio I ICR P551 I 3110-0 33(103 1-N-00-E 15--13/E 104so.0 55-50,0 15-5-0-01 15-Aq.-01 3)-ApWI 55-
sN-S Sop.S3
(11 -t A uo- oo kofoid ksg.1 08 .0 Obsov,s&co 3 CRI P5-o I 250,OO 575,00(0 I-M,00.3 15-Ap-OS 15fpl I 5-Jsp03 15h-3803 55-Ag5003 31A0g03 1-,03 i5S .o -2034
(LI) Eloss O26i.s -3 IS 152 I 91/103 950.00 1-0.03 1-W01E I55-26-E 15,-AqoE N/A 1-50-315- 0003 31 -03.0 5000-004
1110) 551.-50t .0 115,50 So 15 2 Oil Ps/so 1 16 1764500 30.API-42 30-0*O 15-2.0 15-Au0 305-40 31-6002 15-SOs-2S 35/Mo-02 F20,5304
j(IOWo0010s.-PP0 I 71 500 I 77000 7,700 N/A N/A N/A N/A N/A N/A N/A N/A N/A
I(p T0osOS5oPPF I 00 003 2 M0OW 11050 N/ NA I NA - N/A N/A N/A N/A N/A N/A
l(ORsoOss -NPF I 00 05 I 3,000 3,30 N/A N/A N/A N/A N/A N/A N-A N/ NA
TOTAl. 02,075,500~~~~~~~~~~~~~~Z1 12,750,50_ _
- 62-
(JR) Intemssun tmInsEfh to prepare technircal desiggud, I Cl CQ TO cny I 35,00 36,750 l ~ 15-Sep-0 15-Oct02 N/A 31-Oct02 30-Noo-00 15-Dec-00 Mar-2001
(ER) Degi adtechnical seficaono for 5pilot courts IC2 QB io 124000_1_ -0 1-JIn-0l ISe 0 31-Oct01 15-Dec-01 15-Jan-02 15-Feb-02 20-Feb-02 Ag20
(IR) Arciuncs to prepare TORs for 2 desigp comopetitions IC IC TRol 2 00 _____ I-ug0 N/A NA NSA N/A N/A I -pW 1-e- Dec=2500OR eincomop final desgn and tech specs for Gytomn C4 Design C' Prior 1 69/00 72,450
nio coo I__ ___ 1-Aug-00 I SeM 15-Sep-02 31-Oct-02 N/A 15-Nov-02 15-Dec-00 28-De-00 Mar-2001OIR) Design corap. fina design and tech specs for CenterPilot coon I C5 Dei CITR l 29,000 30,450 I 1eW -Oct-00 15-Oct02 30-Nov-02, N/-A 15-Dec-0 15-Jan-01 28-Jan-01 Mar-2001OIR) Design and itechtical specifications for anon-pilotcoarnsinoErebent, Sepaoanan d Ashnok I IC6. C TORol 1 3 34,650 1-Oct-02 1-Nnv-00 15-Nov-02 31-Dec-02 N/A 15-Feb-01 15-Mar-0l 31-Mar-0l Ma-20
OIR) Design and technical specifications for nonv-pilotcomins Sevan, Artashat, MassisanddcEiesiadzin 1 IC71 CQ TOR Iry 25,000 26,250 1-Nov-02 1-Dec-0 15-Dec-02 31-Jan-01 N/A 15-Mar-0l15I-A l -01 ApIL Jan-2001(IR) Design aid SElncal specificaotisu for rai-priotcoorts. Cassain. Shengait, Ajapnyak Arabkwi and
___e__a____ I C8I CS I OR 2& 1 6052 63,000 1-Dec-0 I-Jarn-01 15-Jan-01 31-Jan-01 , N/A 15Apr-1 15-M4y-l 1 Mz-0 Jal-2001(ER) Expertise for pilotcourts 2 CS1 C8Q I TR10 1 23,310 24,476 I-MWy0
21-Jun-2 15-Jan-02 30-Jun-02 N/A 15-May-02 15-Jan-02 30-Jan-02 Sp20022
()Expesise for ann-pilot coasrs 21 CIOI CQ IT-OR I 12,390 13,010 1-Jan-0 1-Jul-02 15-Jul-02 31-Jul-02 N/A 15-Aug-02 31-Aug-02 Oct-2002
(1R)l[ntemaOnma Consxdonosupervision for all courr 3 CIII CC TO Il 202,000 210,000 Iep-3 1-Oct-03 15-Oct-03- 31-Oct03 30-Nov-03 I5-Dec-03 15-Jan-Oil 15-Feb04 Aug-2024SUBTCYTAL MINFASfRLUCrUE REHIABSERVICE61R01 62
(IG) Design and insplonenidn of new cosTtsadmintsrhaonosysets I C121 QCB20 Prior I 502,502 525,000 1-Jan-01 1-Feb-01 15-Feb-01 15-Mar-01 , 5-Apr,01 31ApO 15-May-01 31-May4J1 Aug-2002
publicasign of financialmgmt Poca d m ing co 2 C131 1,62S PMn I 135200 141,750 1-Jan-2 1-Feb-02 15-Feb-02 15-Mar-02 31-Mar-02 . 5Ap~ 15-May-02 31AW0 Nov-2002(JO) TA for legal drafling 2 C14 IC Fast I 50,502 -52,502 1-art-02 1-Feb-02 -15-Feb-02 15-Mar-02 N/A 15Ar0 15-May-02 31MW0 Sep.2022(JG) Data collection, establishment of-Slatisaics Officeand naising 2 CI5 -CB Fria I 15Z,201 150,602 1-Jan-,02 1-Feb-02 15-Feb-02 15-Mar-02 31-Mar-02 15 1pr May-02y-(JO) Assisoance fin developing sew cane managementprocedures & org. IC1 C CBS Fr-a I 370,020 388,3021 1-Jan-01 1-Feb-01 15-Fe01 15-Mar-01 31-Mar-01 15-Apr-Ol1 15-May-01 31-May-01 Ma-2011G) Assessmenetof scof technology inconets 3 C17 IC TRcd 1 15,503 15,750 I-Jan-03 I-Feb-O 15-Feb-05 15-Mar-O3 N/A 15-Apr-S 1-a-03 31 -May-03 Sep-2003SUBTOTAL.JUDICSAL GOVERNANCESERVICER $I,22001 $8W,2000
(ES) Org. development of tIre Enoforcemenet Seivic, inxLPR office & tg. I CI C 181 2BS5 T-O ony 110,000 115,502 1-Jan-01 1-Feb-01 15-Feb-01 -31-Mar-01 N/A 1 5ArO 15-Ma-0l 3-ay-01 Nov-2001(ES) Development of case processing techniques,statistics and mgnrl 21 C19 CQ TO l 1 60,000 63,000 I-Fd-0I 1-Mar-01 15-Mar-01 30-Apr-01 N/A 15My0 31-4ay-01 15-Jan-01 Dec-2001(ES) Adviory scdistosupyportdraffig 2 020 IC TO ol 1 25,000 26,250 1-Mar-01 I-A-01 15-Ap -01 31-May-01 N/A 15-Jun-01 3
0 -Jtn-0 15-Jul-01 Sep.2001
SUBTUrAL EN'kORCElsIlTSERVCEESERVICES. $19,0 $30,780 ___ __
(A) Corrununicaotionconsudtant:and -am I C21 QCS Pfier I 175,000 183,750 I-Apr-01 I-May-01 15-5la-01 30-Jan-0 N/A 15-Jul-01 31-Jul-01 15-Aug-01 Aug-2002(PA) TV pg producrion 2C022 CB Prior 1 320,030 336,030 I-Ap-01 1 L-01 154 -01 30-Jan-01 31-J"l-0 15-Jul-01 31-Jul-01 15-Aagk01 Aug-2004(PA) Radio iren 2C0231 C Post I 35,020 36,750 1-Mar-01 I1-Ap-01 15-Apr-01 31-May-01 N/A 15-Jun-01 30-Jian-0l 15-Jul-01 Jul-2004(PA) Development of legal blonuelsamnd banks an legalissoes di printing I0241 C Post 1 30,003 3 1,500 1-Jan-01 1-Jul-01 15-Jul-01 31-Jul-01 N/A 31Ag0 15S" 3aep0 Se20022(PA) Psdilic Opotma research -judcial sirvey _ IC251 C Faos 2 403000 42,030 1-Jul-01 I-Aug-01 15-Aug-01 31-Aug-01 N/A 3-e01 15-Oct-01 31-Oct01 Oct-2024
SUBTOAL PUBLC AWARENEE% SERVICES: - 8$M",Xt __
(LI) Devrnelopetofa oncept IC026 QCB0S Friar 1 -50,002 52,502 1-Mar-01 I-Apr-01 15-Apr-0 1 4,WJ0 30-Jan-0l 15-Jul-0 31-Jul-0l 15-Jul-01 Aug-2003
(U)Development ofa classificato c/systemataizahlo IC0271 FCS rior I 80(830 84,000 I-Apr-01 1-May-01 15-ay-01 30-Jan-01 31-Jul-01 15-Jul-01 31-JulIl 15-ALag-01 a-22(Lo Developmentsofasanlware 1_028 QCBS Prior I 9502, 8925 lAMay~01 1-Ja-01 15-Jai-01 30-Jiur,01 N/A 15-My-0 15-Jan-01 30-Jun-01 Jul-2001(Lt)Irnplernentatin 1_029 IQCBS Prior I 05,200 8925 1-Feb-02 1 -Mar-02 15-Mar-02 15-Apr-01 15-Mvay-02 15-Juan-0 15-Jul-02 31-Jul-02 Jan-2023
SJUTOTAL LEGAL MINOMAtION SERVICES.R1,0
(FTC) Anssisance in canficulsur development 2C030 QCBS Pcn 2 1510200 157,50 1-Feb-02 1-Mar-02 15-Mr0 5-Apr-01 I--ay0 15-Jan-,02 15-Jul-02 31 -Jul-02 Jan-2023(ITC) Asnsncc in developmsentof JTC 2C31 CO post I 102,00 102,00 1-Feb0 I-Mar-02 15-Mar-02 15-Apr-01 15-May-02 15-Juns-0 15-Jufl-02 31-Jul-02 Jan-2003SUrOTrAL JUDICIALTRANIG CENTIERSERVICES - $262,500
TOTAL SERVKS I I I$ 3,370,700 $3,37,6351 I__ __________
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(JG) T orgofhads ofWai Camilue and .o_staff of the CCC 2 C32 CQ 1 I 6 63,_ 14-an2 14d-2 15-Jul-2 IS-AE NA IS9p02 30642 ISOC42 DW20M
(JG) Sau ust for manbos ofthe OCC cn saecifictopics I C33 c* TCo* 2 60.60 63,W 1M4w-01 1-Apr41 153Apr-l 1 1 NA IS-An4- 30- 3 n.01 IS-Jul Occ-2002
(JG)Cmnfaceccost bsr 1 23j u (2Cmn s) 2C34 TO 2 30,o 31 01-Fe2 -4Mw- 15Mw-02 11-A2 S01 NWA - IS215-M 31-Ju142 Ocf-2002
(JG) Training of oam a&inisual & dev. Of AOcagsy in m BaL 2 C35 fl2 Pt I I 50,0 525 I-F 2 I-Mw-Cl IS-t- 15-A-01 N/A 1S-1 IS-Ju14 31-Jlu4 1 O-20
(JI)CCompAue b-ginin fgawa t peractl sdandjudes 3 C36 P6 f 0 2 -X 0 31A I1-hn03 1-IJu0 153-J -03A IS Scp( B ISNov43 3Nov03 I _ 2__ 4
(JG) Taming forcourt irnacial offxs 3 C37 CQ IPoe 2 2-000l 21,C 11 -J" 1A2 135-Asl _ISSM4 WA l t-0- 150w-De2 31-D4c-03 Mr-0204
(ES) C puernoc mnidng 2. C35 Q POO 3 2M 21M 1-Jm0 2-F&M0 2$J*0 1S-MwwCl N/A 15*~ 15-J..02 30-Jun2 Oct-M
(ES) Salay mtus for hey Enfosarn lService naff 2 C35 Q ITORr r 3OA01 31j I-Feb1 I-Mw-l 1541w-C ISA W4 OA I1Mwy2 15-Ju2 31-Jl02 O-2002
(PA) PR trais forjudciasy and eafcrns _ _s. vi.staff 2 040 OQ TORall 2 5 50 I-Jr4-2 1-F-Cl IS-eb,02 1SMw4C NA ISAvr02 ISM402 31-M AW0
(PA) Regiornl semniars 2 041 Q ITORa r 10 IC0 I-Ju- 1-b02 15-FebI02 1S6W AA02 N/A I4 3
(PA) Jrnaism maining 3 C42 IC I-TORJu tSiple 4O 1-J Fs43 15-Feb03 IS3-Mw- NA ISA341-3 i3-MWO 3 Dec-2003
(ITC) Trai:ing for lTC stff 2 C43 O TOR oil I 63 I-Jmi-4Cl 02 -4iJu2 ISJul4- Cl Aw4 NA 15<R42 3054 ISOCt02 Ar 2003
(JC) t Oganinaon of confamre to dvdcq canra _ _g
udkiTal wdacasAcuA 1 tC44 po I 31 C 1-Jn401 I-Ju-C 1-Jul-01 31-Ju141 NA 31_kvgoC ISSepC1 _ _ Nov-2D01
TOTAL SMV0FAM TRAiNw $3.670 K
mPIU) Salams A 22 231,0_____
(PIU) Asidit 73,500 ___7_
(PRU) Tramin inA = 84,000
(P1EMS Sysen _ IC is 15,750
(PM13 Opaaong expenses nkaf. few, gmronscxSses etc.) N A _ _ 1000 126,0C0
1TAL IN4MOPER COMIQ __5f S
wnpilotscrn _ 325,00 I
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Annex 7: Project Processing ScheduleARMENIA: Judicial Reform Project
Project Schedule P AitualTime taken to prepare the project (months) 18
First Bank mission (identification) 12/15/98 12/15/98Appraisal mission departure 05/09/2000 05/12/2000Negotiations 06/12/2000 07/19/2000Planned Date of Effectiveness 11/30/2000
Prepared by:
Ministry of Justice, Council of Court Chairmen
Preparation assistance:
PHRD Grant No. 25794 for $281,000, SATAC I and II Credits
Bank staff who worked on the project included:
Name SpecialityIrna Kichigina Senior Counsel / Task Team LeaderEls Hinderdael Architect / Senior Procurement SpecialistBrenda Morata Program AssistantFrances Rosenthal Operations AnalystVigen Sargsyan External Affairs OfficerDavid Shahzadeyan Public Sector Management SpecialistAnna D. Staszewicz Financial Managernent Officer
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Annex 8: Documents in the Project File*ARMENIA: Judicial Reform Project
A. Project Implementation Plan
B. Bank Staff Assessments
Judicial Sector Assessment for the Republic of Armenia, April 1998
C. Other
1. Inventory of Court Buildings and Needs Assessment in the Republic of Armenia, March 20002. Assessment of Court Administration and Case Management in the Judiciary of Armenia, March 20003. Structural Reforms in the Enforcement of Civil Judgments System of Armenia, January 20004. A Masterplan for the Judicial Training Center, January 20005. Social Awareness of the Judicial Reforms Survey, February 2000
*Including electronic files
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Annex 9: Statement of Loans and CreditsARMENIA: Judicial Reform Project
Diffeence between expectedand actual
Original Amount in US$ Millions disbursementsProject ID FY Borrower Purpose IBRD IDA Cancel. Undisb. Orig Frn ReVd
P035806 1998 Armenia AGRI. REFORM SUPPORT 0.00 14.50 0.00 7.51 3.74 0.00P008281 1998 Armenia EDUCATION 0.00 15.00 0.00 8.46 2.31 0.00P008276 1999 Armenia ELECTRANSM & DISTR 0.00 21.00 0.00 19.18 3.34 -0.53P008279 1997 Armenia ENTERPRtSE DEVELOP. 0.00 16.75 0.00 2.92 3.23 0.00P050140 1998 Armenia HEALTH 000 1000 0.00 7.34 4.79 0.00P035765 1996 Armenia HIGHWAY 0.00 31.00 0.00 0.64 -13.04 3.21P064879 1999 Armenia IRRIGATION DAM SAFETY 0.00 26.60 0.00 24.85 1.91 0.00P008277 1995 Armenia IRRIGATION REHAB. 0.00 43.00 0.00 4.39 6.38 5.14P035805 1998 Armenia MUNICIPAL DEVELOP. 0.00 30.00 0.00 22.99 3.22 0.00P051171 1999 Armenia SAC3 0.00 65.00 0.00 5.58 7.08 0.00P051026 1998 Armenia SATAC2 0.00 5.00 0.00 2.43 2.55 0.00P035768 1996 Armenia SIF 0.00 12.00 0.00 0.21 0.99 0.00P057952 2000 Armenia SIF II 0.00 20.00 0.00 19.87 0.00 0.00P057560 1999 Armenia TITLE REGISTRATION 0.00 8.00 0.00 6.80 2.00 0.00P044829 2000 Armenia TRANSPORT 0.00 40.00 0.00 39.49 0.00 0.00
Total: 0.00 357.85 0.00 172.66 28.50 7.82
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ARMENIASTATEMENT OF IFC's
Held and Disbursed Portfolio
In Millions US Dollars
Committed DisbursedIFC IFC
FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic
Total Portfolio: 0.00 0.00 0.00 0.00 0.00 0:00 0.00 0.00
Approvals Pending Commitment
FY Approval Company Loan Equity Quasi Partic
2000 Hotel Annenia 0.00 3600.00 0.00 0.00
Total Pending Commitmnent: 0.00 3600.00 0.00 0.00
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Annex 10: Country at a GlanceARMENIA: Judicial Reform Project
Etirope &POVERTY and SOCIAL Central Low.
Armenia A"la income i I5 9n1998Population, mid-year (mAtions, 3.8 473 3.515GNP per capita (Atlas nmethtod, US$) 480 21190 520GNP (Atlas method, US$ billions) t.8 1,039 1.844
Averaae annual rowth. 1992-98
Population I(%J 0~3 0.1 1.7Labor force (%)-1.2 0.6 1.9 ti
Most recent estimite (tae"t year available 19''248)
Poverty l% of population below national pove ft ..line)Urban population ( of total population) 69 68 3i1Life expectancy at birth (years) 75 2 9 63Infant mortality (per 1, 000 live births) 1 5 23 89Child malnutrition (% of children urider 5) . : AccasstQe.1ew8t rAccess to safe water (% of onufaton) 85 ..as 74Illiteracv (% of population age 15+) 1 4 32Gross primarv enrollment (%of sctoot-aoe Do00u1tiOn) 87 100 108 iti
Male .. 101 113Female 199 103
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
197 1987 1997 1993
GDP (US$ bil lions) . , 1.6 1.9Gross domestic investmentUGDP Z7 ,, 1390 14.7Exports of 9oods and services/GOP . 20.3 19.Gross domestic savings/Gop . . -25.2 -19.2Gross nationalsavinqsIGDP ,, .. 2.68 -12.8
Currentt account balance/GDP . . -15,8 -17,4Interest pavmentslGDP .. .. 0.8 0.8 +Total debtGDP . 49.0 43.5Total debt service/exports . .. 5.8 7.7Present value of debt/GOP . .. 27.7Present value of debt/exports 92.0 .
1977-87 1988-28 1997 1996 1999i-03(average annual growth)GOP .. -7.7 3I1 7.2 ,.
GNP per caoita -1,.5 8.3 -Exports of coods and services , 2.3 1.2
STRUCTURE of the ECONOMY
1977 1987 1997 1998(% of GOP)Aoriculture . .. 33.3 34.2Industry v. 26.2 24.0
Manufacturing .. 25.1 Services - 40.5 41.7 noPrivate consumption .. .. 112.3 107.3General oovernment consumption .. .. 12.9 11.9Irmports of aoods and services . .. 58.S 53.0
1977-87 1988-98 1997 1998(average annual growth)Agriculture .. 1.6 0.5 21.3Industrv . -14.1 3.7 12.1 Z
Manufacturin. -13.1 3.3 .. 3ZServices .. -10.8 4.5 .. 20Private consumption -8.6 1.7 .. /sGeneral qovernment consumption . -2.1 4.4 -i
Gross domestic investment .. -10.9 24.3 Zi
Imports of aoods and services . 2.7 2.3 .. " s . .r - im,wtsGross national Product .. -9.9 8.6
Note: 1998 data are preliminary estimates.
The diamonds show four kev indicators in the countrv (in bold) compared with its income-group averace. If data are missina. the diamond wiltbe incomplete.
- 69 -
Armenia
PRICES and GOVERNMENT FINANCE1977 1987 1997 1998 _ o-%
Domestic prices(% change)Consumer prices .. .. 13.8 8.7
Implicit GDP deflator .. .. 17.3 11.2
Government finance 2,00 v
(% of GDP. includes current grants)Current revenue . .. 19.8 20.8 03 9t r, " s
Current budget balance .. .. -1.7 1.5 P r
Overall surplusldeficil .. .. -5.9 4.3
TRADE
(USS millions) 1977 1987 1997 1998 (US5 AIans)
Total exports (fob) .. .. 233 251 tGold, jewelry, and other precious stones .. .. 102 .
Machinery and mechanical .. .. 36 .
Manufactures .. .. 19Total imports (cifl .. .. 793 802
Food . .. 270 .. _
Fuel and energy 235
Capital goods .. .. 34 .. _U2 #8 4 98 se 07 #
Export prce index (1995=100) ..
Import price index (1995=100, .. .. .. .. *Es SrkTerms of trade (1995=100J ..
BALANCE of PAYMENTS
(US$ millions) 1977 1987 1997 1998
Exports of goods and services .. .. 330 357 -
Imports of goods and services .. .. 952 948
Resource balance .. .. -622 -591 o
Net income .. .. 123 75 4 _
Net current transfers .. .. 242 188 t-
Current account balance .. .. -257 -328
Financing items (net) .. .. 316 331
Changes in net reserves -59 -3
Memo:Reserves including gold (US$ millions) . .. 255 298
Conversion rate (DEC, loca/lUS$) .. .. 490.6 504.5
EXTERNAL DEBT and RESOURCE FLOWS1977 1987 1997 1998
(USS millionsJ 4o _e ofu QWa d 109 lw s$ mUIons)
Total debt outstanding and disbursed .. .. 798 820
I BRO . .. 11 10 e4 ,1
IDA 254 293
Total debt service .. .. 28 37IBRD . . 1 1 :9
IDA . 1 2 22*
Composition of net resource flowsOfficial grants .. .. 35
Official creditors . .. 98 18
Private creditors 0 0
Foreigndirectinvestmenl 51 221 TO:7 .
Portfolio equity .. .. 0 0 C¢ 174
World Bank program A-SiN
Commitments .. .. 107 125 e OA D-oti swa ti F -Prte
Disbursements .. .. 77 43 C W G J &Wt84r
Principal repayments .. .. 0 0
Net flows .. .. 77 43
Interest payments .. .. 2 2
Net transfers .. .. 76 41
Development Economics 9122199
- 70 -
- 71 -
IBRD 29596
AA' T. A~~~~~~~4 4~ 6~
GEORGIA ,,_ I Iabn. _;i.__J. \ E R IAtt <e '6 .=GEORGIA ToTh,~~A V I IGEO GI
. Ba9novko. UKRAINE
-K >' 7 - i- KAZAKHSTAN
/,~~~~~~~~~Ts Ar Aevrdi Noyemoer,or T ZRB IAY
~~~~~Res.~~~~~~~~~~ ' -QJ EGO IAR CPTL
RYIA SSSIANEPSU
W'?L 65VA AS O DRATIOE
<'.' M,. 3'-' > 4 REPUBLIC <REPUBLIC 'OF ARMENI
co!ors~~~~~~~~~~~~~~ 0eonbr Ro ')_ AFIA TL >,~ 0 0 3 0 5 0lmb 3.i
LodRs, ; o2ngb
IJEV R O N ( R M AYITA9S
40 - PRIMARY ROADS 4D~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MIGCHU5KY
GY T U-S H RESERVROAIR OO4-RAI RAD
VANADZOR I I~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~- -NTRA OA OUDRE
-~~~ REPUBLIC Reoeroorn r Tolorrgekoi 0 15 20 35 40MiIos~~~~~~~~~~~~~~~~~~~~~~~~~~SYIA REL)LI
39 0 040 0!o000e0 000. OF IRAN 0 iT 20 30 40 ST STKlooelers ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~RABOFRA
rXOTN~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MY(O