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Kutaisi, PMCG
Photo/ Levan Nioradze

PMCG: Strengthening Enterprise Management in Kutaisi Municipality

PMCG continues to support Kutaisi Municipality in capacity building and institutional development.

Recently, PMCG, under the USAID Good Governance Initiative Program, supported nine municipally-owned enterprises in improving management efficiency.

The main rationale was that by improving management efficiency and capacity of these enterprises, the municipality could avoid the burden of maintaining entities that were operating at low-profitability or even insolvency due to poor management.

The first phase of the project was devoted to exploring the current situation in the relevant enterprises. Accordingly, top managers and financial managers of the enterprises were interviewed. One of the main objectives of the interviews was to identify key reasons for the inefficiency of municipally-owned enterprises from the perspective of top managers.

After the interviews with the representatives of the municipally-owned enterprises, capacity building needs were identified. It was revealed that the main problematic area for the majority of the municipally-owned enterprises were state procurement, human resources management, accounting and financial (business) planning instruments.

With this in mind, PMCG conducted trainings for the municipally-owned enterprises in the following areas:

  • Strategic Planning
  • HR Management Strategy and Techniques
  • Public Procurement Procedures
  • Financial Accounting and Tax Reporting

During the last phase of the project, PMCG’s team shared their suggestions with the management of these enterprises, and gave some recommendations for their long-term development and reorganization.