Risks of modernization projects must be calculated at the business plan stage - Grebnev
Possible risks of enterprise modernization projects must be calculated at the business plan stage, stated First Deputy Chairman of the Vitebsk Regional Executive Committee Gennady Grebnev today at a meeting of the regional executive committee, which reviewed the implementation of the program "Development of the Industrial Complex of the Vitebsk Region until 2015" and the implementation of modernization plans by industrial organizations, reports BELTA correspondent BELTA.
According to Gennady Grebnev, one of the main reasons for the failure to implement the industrial complex development program and inefficient modernization of enterprises is a formal approach to projects during their development. At the stage of forming the modernization program, enterprise economic departments do not calculate the costs and do not think about where to get the resources for implementation. "And where projects are still being implemented, closer to the completion of modernization, it turns out that money, effort, and time have been spent, but the desired economic effect from such modernization is either absent altogether or is minimal," stated the first deputy chairman of the regional executive committee.
Often, the cost of products manufactured with new equipment turns out to be an order of magnitude higher, and the project payback does not meet the declared figures. "Modernization is usually carried out at the expense of credit resources, the time comes to pay them off, but there is not enough profit to service these loans," said Gennady Grebnev. He emphasized that the economics committee and other regional and district services must delve more thoroughly into the essence of the proposed projects and measures and, at the stage of forming the business plan of an investment project, calculate in detail the risks and threats that may arise during and after implementation.
Alena Tikhonova