Washington, D.C./Belgrade, December
21, 2005—In a project that fits its long-term strategy of developing
sustainable infrastructure in emerging countries, the International Finance
Corporation – the private sector arm of the World Bank – has been appointed
by the government of Serbia to serve as lead advisor in the restructuring
of Serbia’s national carrier, Jat Airways. IFC will provide the government
with a review of the airline and the sector, identifying critical issues
and suggesting recommendations aimed at transforming Jat into a viable
enterprise through private sector participation.
This work will develop Jat Airways’ strategic goal of enhancing its network
integration into the regional and global aviation industry. Founded in
1927, Jat Airways (www.jat.com)
is the airline with the longest tradition in southeastern Europe. With
its hub in Belgrade, it is well-positioned to foster efficient regional
cooperation with other airlines serving the Balkans.
The advisory mandate will be funded by Norway and executed by the newly
established IFC-Private Enterprise Partnership for Southeast Europe Infrastructure
(PEP-SE Infrastructure), IFC’s regional program providing advisory services
for structuring and implementing public-private partnerships in infrastructure.
PEP-SE Infrastructure is a donor-funded program that receives support from
the governments of Austria, Italy, the Netherlands, Norway, Switzerland,
and the United States. Focusing on energy, transport, water, sanitation,
and other infrastructure subsectors, the program helps develop, promote,
and execute infrastructure projects with private participation through
project preparation, structuring, transparent bidding processes, and mobilization
of financing. Clients benefit from first-class expertise on technical,
legal, and regulatory requirements and from IFC’s honest broker role.
IFC’s Advisory Services Department (www.ifc.org/advisory)
provides advisory assistance, primarily to governments, on private sector
participation in the provision of infrastructure services. The services
help establish public-private partnerships through which governments can
bridge the need for increased services despite budget constraints and with
the benefits of private sector expertise, management, and finance.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $44 billion of
its own funds and arranged $23 billion in syndications for 3,143 companies
in 140 developing countries. IFC’s committed portfolio at the end of FY04
was $17.9 billion, with an additional $5.5 billion held for participants
in loan syndications.