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Preparation of Comprehensive Monotown Modernization Investment Plans (CMMIP)



2011                     Comprehensive Monotown Modernization Investment Plans (CMMIP) for the towns of Mikhailovka, Kotovo, Sharypovo, Suoyarvi.
At the request of municipal authorities Comprehensive Monotown Modernization Investment Plans (CMMIP) in conformity with methodology of the RF Ministry of Regional Development were prepared for the towns of Mikhailovka, Frolovo (Volgograd Oblast), Sharypovo (Krasnoyarsk Krai), Suoyarvi (Republic of Karelia), Serdobsk (Penza Oblast) for 2011-2020. The Plans were approved at the municipal and federal levels and submitted for a completion of monotowns that applied for 2011 federal budget financing with a view to solve problems in the area of engineering and social infrastructure development, diversification of  the town economy and creation of new jobs.

2011                     Financial Model of the Town of Penza

At the request of Penza municipality a financial flow model of the town’s economic entities was built and the town’s balance and capital were calculated (for three previous years and forecast up to 2015). In this case a standard methodology of the RF Ministry of Regional Development used in CMMIP preparation for monotowns was adapted for the town of Penza that is not a monotown. Results of the work were reported at a meeting of the Board of Union of Russia Towns (URT) and will be distributed for information to heads of municipalities, members of URT.

2010                     Preparation of CIP for the Town of Mikhailovka, Volgograd Oblast
Client            Town Administration
Industry:             Construction Materials
Deliverables:         A CIP in conformity with requirements of the RF Ministry of Regional Development was prepared. The monotown diagnostics was conducted; financial flows of the town’s economic entities and their transactions with external entities were calculated and analyzed. Critical risks were identified and the mid-term scenarios for a case if prompt actions to offset risks are not taken were reviewed. A package of measures aimed at stabilization of financial environment, diversification of the town’s economy and creation of new jobs was proposed. Anchor investment projects in the area of social infrastructure modernization were identified. Amounts, sources and terms of investment project funding were estimated. The CIP was approved by the working group under the Government of Volgograd Oblast on 03 December 2010 and by Interdepartmental working group on mitigation of financial crisis effects on socio-economic development of monotowns in the RF territorial entities on 21 December 2010.

2010                     Preparation of CIP for the Town of Ashi, Chelyabinsk Oblast
Client            UN Development Programme (UNDP)
Industry:             Non-Ferrous Metallurgy
Deliverables:         A CIP in conformity with requirements of the RF Ministry of Regional Development was prepared. The monotown diagnostics was conducted; financial flows of the town’s economic entities and their transactions with external entities were calculated and analyzed. Critical risks were identified and the mid-term scenarios for a case if prompt actions to offset risks are not taken were reviewed. A package of measures aimed at stabilization of financial environment, diversification of the town’s economy and creation of new jobs was proposed. Anchor investment projects in the area of social infrastructure modernization were identified. Amounts, sources and terms of investment project funding were estimated. The CIP was approved by the working group under the Government of Chelyabinsk Oblast on 30 September 2010 and Interdepartmental working group on mitigation of financial crisis effects on socio-economic development of monotowns in the RF territorial entities on 08 October 2010.

2010                     Preparation of CIP for the Town of Serdobsk, Penza Oblast
Client            Town Administration
Industry:             Machine-Tool Building
Deliverables:          A CIP in conformity with requirements of the RF Ministry of Regional Development was prepared. The primary areas of the town’s economy diversification were identified as follows: development of production cluster vital for the town support, development of agribusiness and food-processing cluster, development of small business innovation support programme, establishment of recreation/ tourism cluster. The CIP was approved by Interdepartmental working group on mitigation of financial crisis effects on socio-economic development of monotowns in the RF territorial entities on 08 October 2010.


2010                     Preparation of CIP for the Town of Frolovo, Volgograd Oblast
Client             Town Administration
Industry:              Ferrous Metallurgy
Deliverables:         A CIP in conformity with requirements of the RF Ministry of Regional Development was prepared. Potential scenarios of the town development were reviewed and diversification of the economy, elimination of monotown character and quality of living improvement measures were defined. The primary areas should be as follows: development of a cluster vital for the town support (public utilities and engineering infrastructure), establishment of an agricultural production cluster and development of small business innovation support programme. The CIP was approved by Interdepartmental working group on mitigation of financial crisis effects on socio-economic development of monotowns in the RF territorial entities on 08 October 2010.

2010                     Preparation of CIP for the Town of Leninsk-Kuznetsky and the Town of Prokopievsk, Kemerovo Oblast
Client             Town Administration
Industry:             Coal mining
Deliverables:         CIPs in conformity with requirements of the RF Ministry of Regional Development were prepared. Based on 2006-2009 data, diagnostics of the monotowns was conducted; financial flows of the towns’ economic entities and their transactions with external entities were calculated and analyzed. The towns’ balance and capital and their changes were calculated analyzed. Critical risks due to non-diversified nature of the towns’ economies and their persistent underfunding were identified. The existing socio-economic, production and processing conditions and current adverse trends causing different risks were analyzed. The mid-term scenarios for a case if prompt actions to offset risks are not taken were reviewed. A package of measures aimed at stabilization of financial environment, diversification of the towns’ economy and creation of alternative jobs with due regard to gradual coal mine closure and reduction of output was proposed. Amounts, sources and terms of the activities were estimated. The CIPs of both towns were approved by the working team on modernization of monotowns under the Government Committee on Economic Development and Integration on 21 January 2010.

2006-2010          Development of Monocompanies in Monotowns of Russia
Client            OAO “Holding Company “Metalloinvest”
Industry:             Ferrous metallurgy
Town:                  Zheleznogorsk, Kursk Oblast
Company:  OAO Mikhailovsky GOK
Deliverables:         Business analysis held within the framework of 2006, 2007, 2008 and 2010 mineral reserves valuation projects at the major iron ore raw materials producer OAO “Mikhailovsky GOK” (monocompany in the town of Zheleznogorsk) considered, among other aspects of the company business, general employment situation in the town and labour problems the company faces and potentials for reduction of operating expenditures at the expense of reduction and/or retaining the number  of employees. These aspects were analyzed alongside with the general socio-economic situation and the level of employment in the town that were taken account of in making conclusions and recommendations for the company management.

2007-2008-2010
Client            OAO “Holding Company “Metalloinvest”
Industry:             Ferrous Metallurgy
Town:                  Gubkin, Belgorod Oblast
Company:  OAO “Lebedinsky GOK”
Deliverables: Business analysis held within the framework of 2007, 2008 and 2010 mineral reserves valuation projects at the major iron ore raw materials producer OAO “Lebedinsky GOK” (monocompany in the town of Gubkin) considered, among other aspects of the company business, level of unemployment and the general employment situation in the town and labour problems the company faces and potentials for reduction of operating expenditures at the expense of reduction and/or retaining the number  of employees. These aspects were analyzed alongside with the general socio-economic situation and the level of employment in the town that were taken account of in making conclusions and recommendations for the company management.

2008
Client:    Novolipetsky Metallurgical Plant (NLMK)
Industry:  Iron and steel
Town:    Stary Oskol, Belgorod Oblast
Company:   Stoylensky GOK
Outputs:   In 2008, on request of NLMK, the potential for an increase of labour productivity was assessed at one of the largest Russian mining operations – Stoylensky GOK (the major employer in the town of Stary Oskol). The social, economic and demographic situation in the town was reviewed, including the employment and unemployment rates variations. The economic efficiency of Stoylensky GOK operations was analysed, and opportunities for cost reduction and labour productivity improvement were identified, including manpower reduction. The social consequences of the staff cutback in conditions of the 2008-2009 economic crisis were assessed, and the measures for mitigation of the social impact were proposed.

2007-2008-2010
Client:    Evraz Group (formerly Evraz Holding)
Industry:   Iron and steel
Town:    Kachkanar, Sverdlovsk Oblast
Company:   Kachkanarsky GOK Vanady
Outputs:   Within the framework of the contract with Evraz Group on mining assets’ mineral resources evaluation, the detailed review of the financial and business activities of the large iron ore producer (Kachkanarsky GOK Vanady, the major employer in the town of Kachkanar) was undertaken in 2007, 2009 and 2010. The situation in the town, affected by the 2008-2009 crisis, was addressed in detail, and the impact of the production decline on the employment rate was assessed. The long term production development programme was prepared to include the personnel-related and social measures aimed to mitigate the social consequences and to produce an effect on the employment rate in Kachkanar, being a monotown.

2007 – 2009  Development of Good Local Governance in Kazakhstan
Client:    European Commission
Country:   Kazakhstan
Project Objective:  Improvement of local governance efficiency in Kazakhstan
Outputs:   The valid laws of Kazakhstan regulating the local governance issues were reviewed, and recommendations for improvement were developed, including laws drafting. Actions were proposed to strengthen the local governance in Kazakhstan, where the central governance authorities had been traditionally strong, and the local governance was under-developed. Training workshops were arranged for the staff of the Ministry of Economy to introduce the EU local governance principles.

2005 – 2009  Technical Assistance to Municipal Administration Modernisation, Syria
Client:   European Commission
Country:  Syria
Project Objective:  Strengthening of the role and potential of municipal administrations. Development of the policy and legislation for transfer of authorities from the central government to local administrations.
Outputs:  
The draft laws On Local Administration and On Regional Planning were developed, and the territorial development plan was produced for one region;
One stop access to information and services was arranged in Homs, Tartus and Damascus;
The regional development strategy was prepared for Palmyra;
The Sustainable Regional Development Centre was established in Al Jaziri Palace;
Reconstruction plans were developed for several town districts;
The comprehensive plan for the Old Town development in Damascus was produced;
Plans for solid waste disposal were developed;
The transport strategy and the traffic management strategy were developed for Aleppo, Homs, Latakia and Damascus Old City;
Workshops on management methods, local economic development, city planning, waste handling, traffic management, and private-public partnership were delivered; several study tours were arranged, and relations between sister towns were established;
The activities of the Ministry of Local Administration were reviewed, and recommendations for restructuring were provided.

2002 – 2008  Economic Regeneration and Social Adaptation in Donbass (Ukraine)
Client:   UK Department for International Development (DFID)
Country:  Ukraine
Project Objective:  Improvement of business activities and entrepreneurship development. Civil society development. New social policy development.
Outputs:
Development and introduction of strategies to improve the conditions of the poor;
Development and promotion of social and economic initiatives in pilot towns;
Institutional development through training, mentoring and coaching of the main civil society drivers;
Development and operation of the micro-credit scheme;
Consulting and assistance to oblast and municipal administrations in the social and economic area;
Development and introduction of the sustainable youth businesses development programme;
Introduction of entrepreneurship training into curricula of all schools (1,500) of target regions;
Establishment and efficient operation of the investment promotion agency;
Training programmes, the study tour to UK and to the countries of the Central and Eastern Europe;
Establishment and management of the grant system;
Deregulation of the economy to improve the small business activities, development of partnership between oblast and municipal authorities and the business community of the region.

2006 – 2007  Job Rotation Policy Support (Poland)
Client:   European Social Fund
Country:  Poland
Project Objective:  Support of the staff policies for small and medium businesses.
Outputs:   Selection of businesses, training needs assessment and recruitment of the personnel for training: awareness campaign, arrangement of meetings with managers of selected companies to inform about the programme and to review the business status, personnel recruitment needs assessment and training needs assessment. Arrangement and delivery of training for 2,300 employees of selected businesses (40,000 man-hours of training).
Promotion of the job rotation concept: development of job rotation information and training materials for business managers and employment agencies. Preparation, arrangement and delivery of conferences in 5 provinces with participation of 500 representatives of business and employment agencies; arrangement of the conference to disseminate the project outputs for 150 participants.
Arrangement and introduction of job rotation monitoring. Valuation of the job rotation project as a labour market tool, and development of recommendations for further use of this tool in Poland.

2003 – 2007  Social and Economic Development of Lviv Oblast  (Ukraine)
Client:   UK Department for International Development (DFID)
Country:  Ukraine
Project Objective:  Assistance to the administration to develop the oblast economic development plans and programmes
Outputs:   The oblast economic development programmes and budgets were developed in conjunction with Lviv Oblast Administration. The oblast administration activities were reviewed, and new approaches towards planning and budgeting of the social and economic policy were developed in view of the best EU practices. Regional and inter-regional partnerships were established to encourage the economic development and attract investments. Consulting on social and economic projects valuation and on their implementation was arranged. The training programme was delivered for the administration staff, including study tours and trainers’ training in a number of districts.

2005 – 2006  Relationship of Vocational Education System with the Labour Market (Tajikistan)
Client:   European Commission
Country:  Tajikistan
Project Objective:  Development of the vocational education system
Outputs:   Methods of the vocational education system development were worked out in conjunction with the Ministry of Labour and Social Protection of Tajikistan to adapt the population to the market conditions. The labour market and the needs of Tajikistan in labour resources and skilled personnel were assessed. The plan of vocational education institutions development (vocational schools, technical schools, etc.) was prepared for training in the most in-demand professions.

Technical Assistance to the National Agency for Restructuring, UDKR (Ukraine, 1996 – present)


Client:   UK Technologies Fund
Country:  Ukraine
Project Objective:  Institutional development of UDKR established to supervise the coal industry restructuring
Outputs:   Work is being undertaken to assist the National Agency for Restructuring in development of a socially responsible approach towards restructuring processes, jobs creation and re-training of people earlier employed in the coal industry. The labour market and the social and economic situation reviews were made and are regularly updated. Special consulting services are provided for the National Agency to develop entrepreneurship, support small businesses and develop methods of state encouragement of economic development in regions.

Consulting on Job Selection and Employment Services (Poland, 2000 – present)
Client:   Various (over 200 private companies)
Country:  Poland
Project Objective:  Employment of personnel laid off due to downsizing
Outputs:         
Labour market review: studies of the labour market and services for vacancies search and retraining;
Consulting services: consulting on career planning and creation of jobs for the unemployed and for those to be laid off;
Professional training of the unemployed and those to be laid off;
Training of consultants for companies willing to deliver such training.

2003 – 2005  Targeted Social Assistance in Nizhegorodskaya Oblast
Client:   UK Department for International Development (DFID)
Country:  Russia
Project Objective:  Improvement of the economic and social development, growth of economic activities of the population.
Outputs:   Consulting services were provided for the Government of Nizhegorodskaya Oblast, municipal administrations, non-governmental and other civil society organisations to reduce poverty, improve social protection and create conditions for social and economic activities during the economic reforms period. The sociological research was undertaken to identify the oblast population’s needs in the targeted social assistance, and the capacities of the local non-governmental organisations in provision of social services were assessed. The database of social payments and other services with a breakdown by recipients was created. A new model of the targeted social assistance to low income families was developed and tested in pilot sites of Nizhegorodskaya oblast. Based on the gained experience and outputs, the targeted social assistance model was modified in pilot sites and supported by methodological recommendations for its operation. The training programme for the model implementation throughout the oblast was developed and introduced. The outcomes of the model of targeted social assistance of families in Nizhegorodskaya Oblast were disseminated through mass media.

2004 – 2005  State Employment Agency Capability Development for Introduction of the European Employment Strategy (Poland)
Client:   Ministry of Labour and Social Policy
Country:  Poland
Project Objective:  Improvement of the State Employment Agency, professional development of the personnel.
Outputs:  The best practices of the EU state employment agencies were reviewed and presented. Proposals for decentralisation of the Polish State Employment Agency were developed, based on the best practices. The work was undertaken in a close contact with the senior legal consultants. The project for concluding contracts between the national, regional and local offices of the State Employment Agency was proposed. Consulting services on the professional development of the service personnel were provided, including distance learning. National quality standards were established for 20 positions in the State Employment Agency, and the professional development programmes were developed for them. Assistance was rendered in transition to the European employment system, and proposals were developed for introduction of the European employment system on the local level of the Polish State Employment Agency.

2003 – 2005  Sustainable Development of Caspian Territories (Azerbaijan, Kazakhstan, Russia, Turkmenistan)
Client:   European Commission
Country:  Azerbaijan, Kazakhstan, Russia, Turkmenistan
Project Objective:  Mitigation of adverse impact of the excessive use of natural resources through introduction of alternative sources
Outputs:  Consulting services were provided for local authorities and non-for-profit organisations on mitigation of the adverse environmental impact by finding alternative sustainable resources. The traditional sources were reviewed, and new more sustainable living resources were identified in Caspian territories. The positive experience was disseminated to other territories of the region. Coordination between countries on sustainable development of Caspian regions was established. The system of grants provision in the rational natural resources use area was arranged.

2001 – 2004  Support to Chernobyl-Affected Regions
Client:   European Commission
Country:  Zhytomyr Oblast (Ukraine), Gomel Oblast (Belarus), Bryansk Oblast (Russia)
Project Objective:  Assistance to upgrading of living standards by improving the health care system, environmental and economic conditions
Outputs:   Consulting services were provided in conjunction with the Ministries for Emergencies of three countries (Ukraine, Belarus and Russia), aimed at sustainable improvement of the people health, environmental and economic conditions in areas affected most by Chernobyl accident. The social and economic situation was analysed in nine pilot communities (three in each of three countries), and local development priorities were identified. Based on the proposals put forward by the pilot communities residents, 35 micro-projects were implemented, 29 of them having the budget of about € 5,000 each. The projects were aimed at improvement of living standards in the affected regions. The main principle was to use local resources and involve the local population. The funds amounted to € 30,000 for each pilot community. Micro-projects funded by the European Commission were implemented in such areas as agriculture, small business, education and health care. The successful experience gained in the course of the micro-projects implementation was summarised, published and disseminated for a wider use by administrations, local professional communities, educational institutions and other target groups.

1999 – 2003  Depressed Regions Regeneration Programme (Romania)
Client:   European Commission
Country:  Romania
Project Objective:  Consulting of companies and individuals in the course of restructuring before and after downsizing
Outputs:  The approaches towards mitigation of the social tension and jobs creation in areas affected by production cutbacks and industry restructuring were developed and introduced in conjunction with the National Employment Agency. The total number of people supported within the framework of this project through re-training programmes was about 5,000. About 40 specialists were trained for the National Employment Agency to re-train the dismissed employees. Five regional professional training centres were established in various regions of Romania.

2001 – 2003  Recommendations on Regional Development Assistance Policy (Georgia)
Client:   European Commission
Country:  Georgia
Project Objective:  Assistance to development of local and regional planning and introduction in Imereti region
Outputs:  The regional development strategy was prepared for Imereti region, aimed at development of farming and other sectors of the economy. Professional development courses were arranged for local authorities covering the issues of regional development planning, small and medium business support (primarily, in agriculture) and methods of private-public partnership development. Consulting was provided on creation of a unified management information system, necessary for development of the regional strategy, economic development programmes and development plans. Information centres were established in 11 local administrations to attract investments.

1999 – 2001  Projects Implemented within the Framework of Mining Towns Development and Reformation Programme
Client:   European Commission
Industry:   Coal mining
Town:    Kizel, Perm Oblast
Outputs:   The comprehensive analysis of the social and economic situation, created after the 1998 crisis and coal mines closure, was conducted, including the review of the town budget status, taxation basis, unemployment rate and demographic situation. The main options of the alternative development of the town economy and future budget revenues after the mines closure were identified. The long term strategic town development plan was produced in conjunction with the town administration; preparations were made for establishment of a business centre to provide about 30 types of services for entrepreneurs, and for establishment of the social adaptation centre. The municipal small and medium business support fund was created, and the efficient micro-credit scheme was arranged. Preparations were made for establishment of the entrepreneurs association to protect the rights and interests of small and medium businesses. Training was delivered to municipal clerks on vital issues of the modern municipal administration in Russia; the experience and achievements sharing with other mining towns was arranged.

Client:   European Commission
Industry:   Coal mining
Town:    Kiselyovsk, Kemerovo Oblast
Outputs:   The social and economic situation and the municipal budget of Kiselyovsk, a large coal mining town, were reviewed after the production cutback in 1998. Consultations were held with the representatives of the town and district administrations and managers of industrial enterprises on mitigation of the consequences of rapid changes of the economic conditions. The opportunities for the crisis overcoming through re-orientation of the town industrial facilities and creation of alternative production facilities were identified. The strategy of the town development in new economic conditions was developed. The business incubator was established, the municipal small business support fund was created, and the credit line to entrepreneurs was arranged. The Investment Attractiveness of Kiselyovsk catalogue was produced, the youth employment agency was founded, training materials were developed, training workshops were delivered for municipal clerks, and consultations were held on professional training of the unemployed and those willing to start their businesses within the Small Business and Entrepreneurs Programme framework.

Client:   European Commission
Industry:   Coal mining
Town:    Venyov, Tula Oblast
Outputs:  Following a rapid production decline, the strategic development plan of Venyov District of Tula Oblast was prepared in conjunction with the district administration. The plan was published and supported wholeheartedly by the community. The strategic plan was focused on attraction of Russian and international investors interested in starting production in Central Russia, and on the comprehensive social and economic development of the town and the district. The scheme of interaction between the businesses, administration and public was developed for implementation of the strategic plan. The business centre was established to support local entrepreneurs, the guidelines for its operation were developed, and the micro-credit line was launched for entrepreneurs. A department was created in the district administration which would be responsible for attraction of direct investments for small business development. The small business development training courses were arranged for the unemployed, and the study tour of representatives of Venyov to Chesterfield (UK) was organised to share the experience in social and economic development of former mining towns.

Client:   European Commission
Industry:   Coal mining
Town:    Novoshakhtinsk, Rostov Oblast
Outputs:   Following the coal mines closure, the strategic development plan of Novoshakhtinsk was produced with an active involvement of the town administration. In the course of the strategic plan development, the town administration specialists were trained in organisation and methodology of the regional development strategy preparation, under the experts’ supervision. The strategic plan was approved by the town duma (parliament) and accepted for implementation. The comprehensive analysis of the social and economic situation in the town and in the district was conducted, and the programme for mitigation of the social tension was developed. The programme of small business development and entrepreneurship support was prepared within the framework of the above programme. The town business park and the educational centre for training in the basics of business planning and financial management were established. Information materials were prepared for the town administration to attract potential investors. Technical and methodological assistance was provided to establish the town and district economic development agency. Training workshops were delivered for the municipal clerks (more than 400 people) on information technologies, communication skills and valid Russian legislation.

Client:   European Commission
Industry:   Coal mining
Town:    Kopeysk, Chelyabinsk Oblast
Outputs:  The analysis of potential town economy diversification in conditions of coal mines closure was conducted. The strategic town development plan was prepared in conjunction with the town administration and with involvement of the public. The plan provided for development in three priority areas: 1) development of entrepreneurship and small business; 2) social services development; and 3) utility infrastructure development. The findings of the population and experts survey were used in the course of the strategic plan development, which enabled to involve active community members into solution of the local problems. In the course of the plan development, about 700 people were trained in the theory and methods of strategic planning. Preparations were made for establishment of the town agency for entrepreneurship support (business centre) to provide training, consulting and IT services. The entrepreneurs support fund was created to encourage small businesses through the micro-credit programme. The series of workshops on municipal management was arranged for the town administration staff. The study tour of Kopeysk delegation to Poland was organised to share the experience in restructuring of coal mines, and the experience sharing with other Russian mining tons was arranged.

1998 – 2005  Projects Implemented within the Framework of the European Commission’s Tacis Enterprise Restructuring Facility (TERF) Project
IMC Montan has a wide experience in implementation of Russian enterprises restructuring programmes within the frameworks of the international donors’ projects. In particular, three phases of the European Commission’s Tacis Enterprise Restructuring Facility (TERF) project were implemented successively in 1998-2005. The first phase was carried out in 1998-1999 and included provision of technical assistance for 20 Russian enterprises. Technical assistance was provided for 33 enterprises within the framework of the second phase, in 2000-2002. At the third phase, in 2004-2005, the technical assistance was provided for 21 Russian enterprises. Hence, the total number of enterprises involved in TERF was 74.
The objective of these projects was to encourage the development of Russian private enterprises through dissemination of the best practices of the European Union countries of enterprise restructuring, improvement of enterprises management and development of their potential by running reorganisation programmes. The methodology of the projects implied that experts worked in a direct contact with each of the selected enterprises, identified the management bottlenecks together with the enterprise managers, and implemented programmes to improve the efficiency of their work. Therefore, the projects took account of the problems and interests of each enterprise participating in the project.
The Russian Union of Industrialists and Entrepreneurs was the Russian partner in implementation of the projects. The business cases were published upon completion of the projects, and were later used as training materials in Russian and European educational institutions.
The enterprises involved in the Tacis Enterprise Restructuring Facility project included monotown-forming enterprises. Below is a summary of six projects implemented in Russian monotowns.

Client:   European Commission
Industry:  Iron and steel
Town:    Cherepovets, Vologda Oblast
Company:   Severstal
Outputs:   The detailed analysis of the production techniques, organisational structure, human resources potential and strategic plans of the large Russian iron and steel company was conducted. The updated strategic development plan was prepared, and recommendations on upgrading of the existing production facilities were provided to improve the production and economic performance. Proposals for development of by-products facilities and output of additional products were put forward to ensure a more complete utilisation of the enterprise potential. Recommendations were provided to improve the organisational structure and management efficiency.

Client:   European Commission
Industry:   Textile industry
Town:    Chaikovsky, Perm Oblast
Company:   Chaikovsky Textile
Outputs:   The comprehensive analysis of technological, marketing and organisational aspects of the large textile industry town-forming enterprise, producing synthetic fabrics, was undertaken. Recommendations were given for solution of a number of technological problems of the textile production and for expansion of the products range. Proposals were put forward to improve the management structure of some technological units of the enterprise, in particular, the dyeing and finishing facilities and the spinning facilities. The detailed marketing report was produced to address the status and outlooks of the Russian textile industry, as well as measures to improve the market position of the enterprise. Recommendations were provided for the managers on methods of marketing forecasting, improvement of the sales department efficiency, and products promotion on new markets.

Client:   European Commission
Industry:   Non-ferrous metal industry
Town:    Belaya Kalitva, Rostov Oblast
Company:   Belaya Kalitva Metallurgical Production Association
Outputs:   The financial and business performance of the metallurgical plant (town-forming enterprise) was analysed. The plant produced rolled aluminium and metalwork. A special attention was paid to development of the export potential of the enterprise and to the analysis of the products promotion on the export markets. The marketing study was undertaken, and the report on the status and prospects of the rolled aluminium market was produced. Recommendations were provided for the enterprise managers on development of the marketing strategy, improvement of the export department management structure, professional development of the personnel, and improvement of the marketing department efficiency.

Client:   European Commission
Industry:   Iron and steel
Town:    Asha, Chelyabinsk Oblast
Company:   Asha Metallurgical Plant
Outputs:  The efficiency of the organisational structure and the management system was diagnosed from the viewpoint of the experts from the European Union countries. Recommendations for improvement of the organisational structure and management decision taking system were provided. The range and competitiveness of the products were analysed in view of the current rolled metal market trends. Recommendations for transition to the gradual diversification of the products range were presented. Specific measures for organisation of alternative products output, and for training of the personnel oriented to these products, were identified.

Client:   European Commission
Industry:   Wood industry
Town:    Elektrogorsk, Moscow Oblast
Company:   Elektrogorskmebel
Outputs:   The comprehensive scope of work was undertaken to improve the methods of financial planning and management, marketing strategy and management information system at the furniture plant (town-forming enterprise). The efficient system of control over targets achievement by each unit and over the budget performance of the plant was developed and introduced. The introduction of the modern management information system improved the budget efficiency, financial discipline and marketing department operations.

Client:   European Commission
Industry:   Machine building industry
Town:    Pavlovsk, Nizhegorodskaya Oblast
Company:   Pavlovsky Avtobus
Outputs:   The financial and business performance of the plant producing buses and automobile components (town-forming enterprise) was analysed. The set of urgent measures was developed to ensure financial viability of the plant and to maintain its role of the town’s major employer. The key factors of these measures included diversification of the products range in view of the market demand, modification of the marketing policy and orientation to output of in-demand products. The Russian market study was undertaken, and the plant’s position among producers of buses and automobile components was identified. Recommendations were developed for prompt management decision taking and introduction of relevant changes into the practice. The plan for crisis overcoming was drafted.

1998-2000  Kaliningrad Oblast Support in the Special Economic Zone Context
Client:   European Commission
Region:   Kaliningrad Oblast
Project Objective:  Support of the social and economic development of Kaliningrad Oblast
Outputs:   The monitoring of the social and economic situation was undertaken in conjunction with Kaliningrad Oblast Administration, and the development priorities were identified in the context of the special economic zone creation, The short term strategic regional development plan was produced. The Regional Development Agency was established in Kaliningrad Oblast as an important tool of the economic development. The agency’s functions included regular monitoring of the social and economic situation in the oblast, measures for improvement of the business and investment climate, attraction of Russian and international investors and trade partners, and promotion of investment programmes.

1999-200  Social Adaptation in Mining Regions (Romania)
Client:    European Commission
Country:   Romania
Project Objective:  Improvement of business activities and development of the entrepreneurship culture
Outputs:   The strategy for mitigation of the social impact of the mining industry restructuring was developed in conjunction with the National Agency for Mining Regions Development. The micro-credit and entrepreneurship support system was developed and introduced, and services were provided for enterprises to create automatic jobs. Training workshops were arranged for the agency staff for introduction of mining regions reorientation programmes. The network of regional business centres was established on the basis of 14 regional offices of the agency to provide consulting services for entrepreneurship development.

2000-2001  Technical Assistance to Studies of Social Impact of Ignalina Nuclear Power Plant Closure (Lithuania)
Client:    European Commission
Country:   Lithuania
Project Objective:  Mitigation of the social impact of Ignalina nuclear power plant closure (town-forming enterprise).
Outputs:   Jobs creation programmes were developed for administrations of three districts, and assistance was provided to establish partnerships to handle social and economic problems. Training workshops were delivered for the local governance staff on such issues as partnership development, local employment initiatives, allocations of financial resources by the European Social Fund and European Regional Development Fund after joining EU. The social and economic impact of the nuclear power plant (town-forming enterprise) closure was analysed. Recommendations on grants provision and grant bids consideration procedures were given. The systematic monitoring of grant funded projects was arranged.

1996-2000  Solution of Problems of the Social Impact Produced by the Economy Restructuring and Privatisation in Kazakhstan
Client:    European Commission
Country:   Kazakhstan
Project Objective:  Improvement of the social policy in Kazakhstan and employment agencies capacity building
Outputs:   Efficiency of services provided by the Ministry of Labour and Employment of Kazakhstan was analysed in conjunction with the Ministry, and methods were developed for strengthening of employment agencies’ role and for professional development of the staff of the Ministry and the local employment agencies. The legislation, administrative barriers and financial constraints, which produced an impact on the employment, were analysed in comparison with the EU countries experience. Social development strategies were developed for three pilot sites, and training workshops were arranged for the employment agencies staff. The micro-credit fund was established which contributed to creation of about 180 jobs.

1999-2000  Projects Implemented within the Framework of the IBRD Monotowns and Town-Forming Enterprises Project
Five monotowns and their town-forming enterprises were studied within the project framework. Three development scenarios were considered for each of them: 1) no changes; 2) productivity growth at the existing enterprise with minimum investments; and 3) implementation of a large investment project. The main conclusion was that the key factor of restructuring is not financial resources, but knowledge, methods and management know-hows. Below is the description of 2 of 5 implemented projects.

Client:    World Bank
Industry:   Iron and steel
Town:    Asha, Chelyabinsk Oblast
Company:  Asha Metallurgical Plant
Outputs:   The social and economic analysis of the town facilities in the crisis conditions was conducted, along with the comprehensive analysis of the financial performance of the town-forming enterprise. The plant’s contribution to the town budget and the plant’s social assets were assessed. The range of products was studied in view of their competitiveness and market trends. The plan for diversification of the plant’s products and output of the alternative products with jobs creation was developed. Recommendations on the structural and economic development of the town and on new businesses start-up were provided. The plant restructuring model was created, and the small business support programme was prepared.

Client:    World Bank
Industry:   Machine building
Town:    Shadrinsk, Kurgan Oblast
Company:   Shadrinsk Automobile Units Plant
Outputs:   The crisis situation in the town (analysis of the budget, taxation, enterprises’ contributions to the budget, social and demographic situation) and at the town-forming enterprise (analysis of financial and business performance, marketing, sales, organisational structure, social facilities) was studied. The audit of the financial and business performance of the town-forming enterprise, of the sales policy and organisational structure was undertaken. The main problems of the town and the enterprise were revealed, and the main risks of unfavourable changes in the crisis conditions were identified. The plant restructuring options were considered in conjunction with the managers of the town and the enterprise, taking account of the potential negative social consequences. The problems of handing over the plant’s social assets to the municipal authorities were also addressed. The products marketing outlooks were assessed, and potential options of production diversification were considered, in view of the capabilities of the town and the enterprise. Recommendations on improvement of the production efficiency, reduction of production costs, gradual diversification and alternative jobs creation were provided. The plan for the development of the town small business support programme and of the relevant infrastructure was developed in conjunction with the town administration.

1998   Coal Industry Restructuring
Client:    World Bank
Country:   Russia
Project Objective:  Social, economic and environmental regeneration in coal mining regions
Outputs:   The social and economic analysis of the industry during the crisis period was conducted in conjunction with the Ministry of Coal Industry of Russia. The current financial status of enterprises was studied, and their potential profitability and/or unprofitability was analysed to create competitive coal companies. The plans of dismissed personnel employment through production diversification, entrepreneurship development, local development programmes implementation, and assistance in relocation to other regions of Russia were considered. Recommendations were presented on programmes of social, economic and environmental regeneration and social stability in coal mining regions, based on improvement of the social infrastructure and strengthening of environmental activities in the regions. Proposals for coordination and agreement of the interests of the communities, the state authorities and business were put forward. The coal industry finance structure was analysed, the tools for investments attraction to the industry were developed, and the need in creating entrepreneurship development funds and associations was justified.

1998-2000  Mitigation of Unfavourable Impact of the Social Adaptation in Donetsk Oblast (Ukraine)
Client:    European Commission
Country:   Ukraine
Project Objective:  Improvement of business activities and development of the entrepreneurship culture
Outputs:   The monitoring of the social and economic situation in the region during the crisis period was undertaken in conjunction with the administration of Donetsk Oblast. Approaches were developed towards mitigation of the social tension, and the measures for diversification of employment, including small and medium business development, were identified. The regional entrepreneurship support fund was established, and the micro-credit scheme was introduced. Training in micro-credit fund management was delivered, and the training programmes for entrepreneurs were developed. The methodological framework for a business incubator creation was prepared

 
 
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