It became clear at the beginning that the resources of the construction industry—in terms of equipment, men, and skills (both technical, professional and managerial)— were damaged, and in east Mostar comprehensively destroyed. It seemed to me that if we spent a lot of money on physical repairs in a short time period, and if the work was mainly done by local companies, there would be a serious lack of capacity on the supply side. This would lead to high costs, poor quality and slow performance. A balanced approach therefore required us to enhance capacity as well as boost demand.

In January 1995, after extensive consultations in the industry, I submitted a paper to Mr Koschnick, which argued for several forms of action:

1. • set up a construction equipment pool and hire out equipment for a fee;

2. • give loans to construction firms, material producers, builders’ merchants and professional offices;

3. • encourage partnership with foreign firms, including skill transfer and investment;

4. • support the creation of professional societies and trade associations, particularly, perhaps, technical libraries;

5. • establish a technical training centre and relate training to specified manpower and skill problems;

6. • repair (via grants or loans) material production processes, such as quarries, brickworks and joinery workshops;

7. • repair and re-equip a materials testing laboratory; and

8. • create a materials procurement and distribution organisation, in partnership with defunct local merchants.

I proposed to give this task to consultants and asked the Crown Agents (the only relevant agency in theatre at the time) to organise this. A short consultancy exercise was undertaken, which was completed in March 1995. The Economy Department took up the administration of grants to builders, although not to materials producers. This led to either imports or to poor quality materials and components. Also, the grants were not given in accordance with any strategy regarding the future pattern of the industry. Nothing was done by the EUAM to improve material procurement, but the German government agency, Technisches Hilfswerk (THW), cancelled its withdrawal plan and in 1995 expanded to fill much of this need. Several initiatives were implemented by the EUAM, however, namely the construction equipment pool, the technical training centre, and the testing laboratory.