What is PPERP

The conflicts in Yugoslavia during the 1990s, and particularly in Bosnia and Herzegovina, resulted in serious damage to the industrial base, as well as the well-known human suffering and damage to infrastructure. Industrial activity in Bosnia virtually ceased during the war and many of the factories and their plant were badly damaged. With the end of fighting, industry faced the combined challenge of rebuilding and reequipping factories, finding capital and suppliers and regaining markets, while trying to catch up with the rapidly developing international world of business.

The major difficulties facing Bosnia and Herzegovina have attracted assistance from many international donors. Amongst these has been the UK’s Department for International Development (DFID), which has provided assistance through several projects aimed at areas of economic and social difficulties. The Post-Privatisation Enterprise Restructuring Programme (PPERP), the largest DFID-funded project to date in BiH, is managed and implemented by IMC Consulting Ltd. PPERP has the overall aim of assisting newly privatised enterprises to restructure to ensure long-term viability.

PPERP is a three-year project that commenced in September 2001. While the main activity has been to give direct assistance to newly-privatised enterprises, other activities have been included in the project to address related problems and to develop the local capacity for enterprise restructuring. Because of the high existing level of unemployment and the probability of further job losses, the project has worked with local governments, NGOs and other donor projects on activities to promote the development of new jobs.

The project has been undertaken by European and local consultants, blending international expertise with local knowledge. Training courses in business and consulting skills have developed the capabilities of local consultants, who will now be able to continue to provide a high level of assistance to industry in BiH.

Main focus of PPERP

In terms of direct support to enterprises, PPERP has provided a range of services which can be categorised under three broad areas of activity, namely:

– Assist selected companies to restructure their business in line with private sector needs to ensure their future viability, and promote profitable operations;
– Assist those individuals who may lose their employment as a result of the restructuring process, search for new employment opportunities, and secure new jobs;
– Seek to widely disseminate the techniques used and the results obtained from the restructuring process, to promote awareness of the benefits of enterprise restructuring activities in the private sector generally.

Other important elements of the project include developing a commercial market for restructuring consultancy which should be increasingly satisfied by local service providers.