The EBRD TurnAround Management (TAM) Programme is assisting an engineering and construction company to expand its business
AzVirt is a family business established in Baku to undertake large road construction projects. The company has a German partner which has provided much of the technical and engineering know-how and support and its plant and equipment have been purchased from leading western manufacturers.
Diversifying and overseas expansion
In 2009 the company decided to consult the EBRD TurnAround Management (TAM) team based in Azerbaijan to improve its operational management and to prepare and implement a strategy to diversify its business and expand it overseas. The advisory service funded by the Korean Technical Cooperation fund helped AzVirt to define and apply a strategy to avoid the risks of depending on few large projects. The company is now undertaking small-scale projects contracts as well as having successfully ventured into new construction projects. By strengthening the continuous quality control of materials and good workmanship in construction sites, the company improved its performance.
Introducing innovative infrastructures
Thanks to these strategic approaches and TAM’s assistance, AzVirt is particularly proud to have been engaging in the fabrication and erection of a steel structure for a cable-stayed bridge in Bine Junction and an extra-dosed bridge in Merdekan Junction, the very first bridges of this type in Azerbaijan and in the region. The company is growing fast, expecting to significantly increase its contracts volume in 2011.
The TAM Programme started its operations to support local SMEs in Azerbaijan in 1999 and since then a total of 32 projects has been completed in a wide variety of sectors and industries. Korea has provided a total of €356,000 in funding for five TAM projects in five EBRD countries of operations, including Armenia, Azerbaijan, Mongolia, Montenegro and Uzbekistan.