Podgorica, Montenegro, May 20, 2008—
International Finance Corporation (IFC), a member of the World Bank Group,
today signed an agreement with Montenegro’s Ministry of Transport, Maritime
Affairs, and Telecommunications to provide advisory services on structuring
and implementing a public-private partnership for the Bar-Boljare Motorway
to help improve transportation. IFC will serve as lead advisor to the ministry,
helping attract developers for the new road.
The Bar-Boljare Motorway, which will cost about €2 billion, is expected
to be a multiyear project. The motorway will connect the north of the country
with the capital Podgorica, and further south with the Adriatic Coast,
a popular tourist destination, and the location of the Port of Bar. The
motorway will provide a critical connection between northern and southern
Montenegro, and as part of the Bar-Belgrade-Budapest European corridor,
link Montenegro to Central Europe. It will also provide an alternative
route between Central Europe and the Mediterranean Basin, helping improve
transportation of freight and for tourists.
Dr Andrija Lompar, Minister of Transport, Maritime Affairs, and Telecommunications
of the Government of Montenegro, said that “The Government of Montenegro
has decided to develop this motorway, as part of the Bar-Belgrade-Budapest
Corridor. As the government is committed to develop the Bar-Boljare Motorway
through a transparent and competitive process, we have decided to mandate
IFC, a member of the World Bank Group, to advise us on selecting a qualified
road developer to build and maintain it,” said Minister Lompar.
“We at the World Bank Group strongly believe that the government’s decision
to develop the Bar-Boljare Motorway will bring tangible economic and social
benefits to Montenegro and will further integrate the country’s economy
into European markets. IFC supports the decision of the government
to structure the project as a public-private partnership,” explained Mr
Angelo Dell’Atti, IFC’s General Manager for Infrastructure Advisory in
Because of the significant developmental impact of this project for Montenegro,
IFC will work with the ministry to identify and implement the most suitable
structure to bring the best value proposition to the country. A transparent
and competitive process is expected to attract the best available expertise
and financing for rapid construction of the motorway and its efficient
and sustainable operations thereafter. Studies conducted by the Government
of Montenegro also indicate that the motorway is likely to attract major
road construction companies and investors to develop the road with private
This project is led by IFC Infrastructure Advisory Services for Southeast
Europe Program (IFC PEP-SEI).
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through syndications and structured finance for 299 investments
in 69 developing countries. IFC also provided advisory services in 97 countries.
For more information, visit www.ifc.org.
About IFC PEP SEI
IFC PEP-SEI is funded jointly by the governments of Austria, Italy, the
Netherlands, Norway, Switzerland, the United States, together with IFC.
It focuses on the development of public-private partnerships in Southeast