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 Southeast Europe.
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 sector participation.
This project is led by IFC Infrastructure Advisory Services for Southeast Europe Program (IFC PEP-SEI).
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 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 Europe.
