Evaluation of Tacis Enterprise Restructuring Facility

Europe-East, November 27, 2001 | Go to article overview

Evaluation of Tacis Enterprise Restructuring Facility


The European Commission's own evaluation unit has carried out an assessment of the TACIS Enterprise Restructuring Facility (TERF) between 1998 and the present. It found that overall relevance and choice of partners were appropriate, but the limitations of the programme in contributing to overall enterprise restructuring (dependent upon major legal and institutional changes) should be acknowledged. There is scope for drawing on practice of other donors in some areas, notably the increased use of Russian consultants. Geographical and sectoral diversification are required to ensure that some key industries and regions receive reasonable coverage, it said.The evaluation concentrates on the relevance, impact and performance of the Facility. Grant funding under TERF has reached a total value of Euro 11.6 million (TERF I and TERF II combined). This has allowed for support to be given to over 50 projects in which consulting services are obtained at discounted prices by Russian enterprises. In principle, TERF should cover all Russian regions except Moscow, St Petersburg and Nizhny Novgorod (already relatively well-served by consulting facilities) and all sectors except military, oil and gas production, financial services, tobacco and alcohol.The purpose of the evaluation was to provide an independent assessment of the relevance, delivery and impact of TERF, and to inform forthcoming decisions on the future budget and coverage of enterprise restructuring activities, not only in Russia but also other NIS countries. The methodology involved (i) collection and analysis of programme documentation, review of other donor activities; and (ii) field interviews with the EC task managers and delegation, TERF consultant and Russian partner organizations, managers and consultants in Russian Enterprise Support Centres and senior staff of 17 medium and large sized enterprises in the Russian regions. The main findings were:* The Russian market for consulting services has matured since the introduction of TERF in 1988 - the concept of cost-sharing has become widely accepted, and in no case had an enterprise fully ignored the recommendations it had received.* Programme relevance depends on the existence of a supportive legal and institutional framework in Russia; however, within these restrictions and its limited budget, TERF is relevant to its target population, and the advice offered generally fits the needs of clients. …

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