ENTERPRISE REHABILITATION PROJECT

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The Enterprise Rehabilitation Project will improve the efficiency of private and privatized firms and develop managerial capacity. Furthermore, the project will strengthen institutional capacity, thus facilitating reform. In addition, it will support the creation of associations of enterprise consultants and managers, as well as small private businesses. The project consists of two main components: 1) the enterprise rehabilitation will be supported through non-investment restructuring of new and privatized enterprises. Initially, foreign consultants with a knowledge proven record from transition economies, will lead the way, providing extensive on-the-job training to local consultants; 2) the enhancement of managerial and consulting skills, will be achieved through the organization and co-financing of secondment, in leading foreign enterprises. Critical risks are cited, such as a discrepancy between regulatory framework and actual practice, as well as a lack of implementation in the reform agenda.