Podgorica, Montenegro, June 14, 2012—IFC,
a member of the World Bank Group, is lending €10.7 million to the capital
city of Podgorica to refinance a bridge construction loan, supporting the
continued development of infrastructure in Montenegro.
The city of Podgorica took the original loan
in the midst of the 2009 crisis. This new loan is part of a multi-year
partnership with the city of Podgorica that includes IFC co-financing road
investments, helping refinance debt, and providing advisory services to
help the city improve its road management policies.
“Development of infrastructure is a priority
for Podgorica,” said Miomir Mugosa, Mayor of Podgorica. “Having IFC as
a long-term partner enables us to continue working on the development of
road infrastructure during a difficult time in the financial markets.”
In 2010, IFC extended a €10 million loan
to Podgorica to help the city finance its eastern bypass highway. IFC plans
to extend another €14.3 million loan to the municipal government to finance
a planned southwestern bypass highway, which will reduce travel times and
costs for approximately 50,000 people a day.
“IFC has a strong partnership with the city
of Podgorica and we hope to expand our support in other parts of Montenegro,”
said Dimitris Tsitsiragos, IFC Vice President for Europe, Central Asia,
the Middle East and North Africa. “The financing we provide to Podgorica
reflects our strategic focus on enabling investments in municipal infrastructure
in the region.”
Montenegro became a member of IFC in 2007.
IFC's investment portfolio in Montenegro stands at $70 million (€56 million).
Through its Advisory Services, IFC aims to improve the investment climate,
strengthen corporate governance, and attract private sector participation
in development of infrastructure projects.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, providing advisory services to businesses and governments,
and mobilizing capital in the international financial markets. In fiscal
2011, amid economic uncertainty across the globe, we helped our clients
create jobs, strengthen environmental performance, and contribute to their
local communities—all while driving our investments to an all-time high
of nearly $19 billion. For more information, visit www.ifc.org.