Strengthening Kutaisi Municipal Enterprise Management

Project Description:

PMCG, as part of a consortium led by Tetra Tech ARD, under the framework of the USAID-funded program “Good Governance Initiative (GGI)”, is providing support to Kutaisi Municipality to establish an effective management system for municipally-owned enterprises.

The main objective of the project is to improve the management efficiency and capacity of nine municipally-owned enterprises: Ltd ‘Preventive Desinfection Station’, Ltd. ‘N4 admixed polyclinic’, Ltd. ‘Encyclopedia Kutaisi’, Ltd. ‘Basketball Club Kutaisi 2010’, Ltd. ‘ Kutaislift’, Ltd. ‘Ukimerioni’, Ltd. ‘Gumati Doctor’s Ambulatory’, Ltd. ‘Georgian Traditions’ and Ltd. ‘Kutaisi Torpedo 1946’.

Improving the management efficiency and capacity of these enterprises helps the municipality to avoid additional costs of maintaining entities that were operating at low-profitability or even insolvency due to poor management.

During this consultancy, consultants from PMCG are providing the following services:

• Holding individual interviews with the municipality staff dealing with municipally-owned enterprises and top managers of nine enterprises; and studying the profiles, by-laws, staffing, tax and accounting records of nine municipally-owned enterprises
• Analyzing and reviewing the mission, goals and functions of these nine enterprises against their operational structures and staffing. Developing a report for Kutaisi Municipality with recommendations to restructure the municipally-owned enterprises, including options such as: (1) continuing as separate enterprises under the municipality; (2) absorption into an appropriate municipal department; and (3) privatization
• Developing training modules and delivering trainings for the responsible managers and staff of eight enterprises in:
  – Modern Business Development Planning Tools
  – State Procurement Policies and Procedures
  – HR Management Strategy and Techniques
  – Accounting and Tax Reporting

• Following up these formal trainings with individual coaching of responsible managers and staff of all enterprises, and providing technical support in preparing business development plans for each enterprise including the following: preparing short and medium term financial forecasts; annual procurement plans and bids for state procurement; HR management; and preparing and maintaining accounting and tax records. Delivering periodic consultations and providing regular reporting to the relevant staff of Kutaisi Municipality on the capacity development progress of the managers and staff of the eight enterprises.

Background information:

USAID has awarded Tetra Tech ARD with a 5-year contract under the Office of Democracy and Governance, whose purpose is to support the Government of Georgia in strengthening overall transparency, accountability and effectiveness of selected governance and service delivery systems. GGI’s work targets the legislative and executive branches at both the central and local government levels. To ensure greater government accountability, GGI works with government and civil society representatives to enhance public participation and disseminate public information about key reforms. This activity addresses the Governing Justly and Democratically Objective of U.S. Government Foreign Assistance, and especially the promotion of well-governed states and civil society areas.

The objectives of GGI are to improve administrative and financial management of public institutions at all levels, to increase civic engagement and improved access to independent, reliable and balanced information relevant to Georgia’s good governance, to strengthen policy development and lawmaking processes and to strengthen institutional oversight of government.

Follow the links below for more detailed information:
Good Governance Initiative (GGI)
Development of a National Health Promotion Strategy and a Prioritized National Health Promotion Action Plan
Support for Preparation of General Methodology for Municipal Priority Document, Design Municipal Priority Documents for 22 Municipalities and Update Comprehensive Regional Action Plans for 6 Regions of Georgia
Regional Development Strategy Context Analysis of the Autonomous Republic of Adjara
Increasing Program Budgeting Capacity of Ministry of Labor Social and Health Affiairs of Georgia
Increasing Program Budgeting Capacity of the Ministry of Regional Development and Infrastructure of Georgia
Support to Public Finance Policy Reform (PFM)