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Vienna, June 16, 2008
—IFC, a member of the World Bank Group, has signed an agreement with Porr AG, one of Austria’s oldest and largest construction companies, to support waste management and property development investments in Southeast Europe that will expand and modernize critical public and private sector infrastructure. This will have positive effects on regional living standards and help create better conditions for doing business in the region.
The €35 million IFC loan facility with a duration of up to 10 years
will enable Porr AG to develop small to midsize property development and waste management projects in Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Montenegro, Serbia, Romania, and Ukraine. In recent decades, the commercial and municipal infrastructure in many of these countries suffered due to underinvestment, war, and economic sanctions. As a result, they need investment in public utilities, as well as infrastructure, to sustain their current economic growth. These projects will address an acute need for high-quality residential, business, and public infrastructure across the region. Better infrastructure will, in turn, encourage sustainable private sector growth and foreign investment.
“Porr AG sees tremendous opportunities for growth in these countries. IFC's financing will affect our growth path very positively. It will strengthen our financial position and enable us to become a strong competitor in Southeast European markets, strongly supporting our corporate strategy in Eastern Europe,” said Helmut Mayer, Porr’s CFO. “We look forward to a long-lasting relationship with IFC. We believe that our partnership will have a sustainable economic impact on Southeast Europe and that it will be good business for IFC as well as Porr.”
“The commercial and municipal infrastructure in the Balkans is underdeveloped, and a lot remains to be done to reach European Union standards,” said Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia. "Our projects will address the acute need for quality infrastructure, which will benefit local businesses, encourage foreign direct investment, and help generate significant employment in the region.”
About IFC
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 should 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
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About Porr AG
Founded in 1869 and listed on the Vienna Stock Exchange, Porr AG is one of the oldest and largest construction companies in Austria. As of December 31, 2007, the company had €2.2 billion ($3.3 billion equivalent) in revenues and employed over 11,000 people. Porr is a flexible, multi-utility group offering a complete range of services oriented to the requirements of the national and international markets and covering all aspects of modern construction. Structural engineering, civil engineering, project development, road or tunnel construction - thanks to a seamless value creation chain, the comprehensive know-how of the Porr AG ensures the completion of complex projects. For more information, visit
www.porr.at
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