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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.
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