Business news
EBRD-sponsored strategy to guide Belarusian top road construction company for four years
MINSK, 18 April (BelTA) – A strategy to guide the development of the Belarusian road construction and maintenance holding company Belavtodor for the next four years has been developed with assistance of the European Bank for Reconstruction and Development (EBRD). The strategy was approved by the State Property Committee on 18 April, BelTA has learned.
The committee’s First Deputy Chairman Aleksei Vasilyev noted that the state of affairs in the Belarusian road construction industry was analyzed and the best methods were employed in the course of preparing the strategy.
The work done to put together the strategy allows laying the foundation for steady growth and a stronger stance of Belavtodor both on the home market and abroad, said Yuri Masyuk, Director General of OAO Managing Company of Belavtodor Holding Company.
In line with the strategy Belavtodor will endeavor to diversify its business and increase earnings up to $470 million. If all the strategic initiatives are implemented, in 2023 earnings may rise by as much as 45 percentage points from 2019. Besides, this year’s earnings are expected to rise by 5% from 2018.
Daniel Krutzinna, a partner in OOO CIVITTA Belarus, one of the consultants hired to develop the strategy, noted that the strategy provides for two priority avenues: higher sales on the home market and abroad for the sake of increasing earnings as well as reorganization and optimization of processes for the sake of reducing costs. Seven strategic initiatives are supposed to help Belavtodor reach these goals. In particular, optimization of excessive and non-core assets, centralization of functions, creation of an effective sale system and a project management system. Achieving breakeven operation in 2019 is the primary goal in 2019.
Specialists believe that the overall cost of implementing the strategy will reach $57.3 million.
According to Chairman of the State Property Committee Andrei Gayev, the adopted strategy is quite feasible. “It is now important to implement all the plans. Moreover, the opinions of professionals, who looked into this matter and came up with proposals, coincided with the opinions of those, who work in the holding company and represent interests of the state,” he said.
According to Andrei Gayev, serious work will have to be done on every point of the strategy. Measures to enhance Belavtodor’s brand were mentioned. Speaking about the company’s stronger stance on foreign markets, the official noted: “When we talk about a stronger Ukrainian direction involving the Moldovan vector, we still keep in mind the Russian Federation with its large market in neighboring oblasts. We still intend to reach the western borders of Belarus.” Andrei Gayev said he was confident that the strategy’s implementation will contribute to forming a positive brand of Belavtodor in neighboring countries.
The European Bank for Reconstruction and Development (EBRD) is taking part in a major project designed to build a national system to manage state assets in Belarus. The system is being tested using assets of the State Property Committee as an example, including Belavtodor. International experts are expected to help improve Belavtodor’s corporate management. This work proceeds in line with the memorandum the Belarusian government and the European Bank for Reconstruction and Development signed in 2017 with a view to improving the system of administration of state-owned enterprises.
The holding company Belavtodor comprises 13 enterprises specializing in road construction and maintenance, bridge construction, manufacturing and transportation. OAO Managing Company of Belavtodor Holding Company is run by the general meeting of shareholders, the supervisory board, and the director general as the sole executive body.
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