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