Podgorica, Montenegro, December 19, 2017
—IFC, a member of the World Bank Group, is lending €7.5 million (the equivalent of approximately $8.8 million), and mobilizing a €7.5 million parallel loan from Erste Bank, to finance a key section of ring road in Montenegro’s capital, Podgorica, and boost the development of vital infrastructure.
The new loan to the city’s government will finance the 3.5-kilometer south-western section of the ring road, which includes Moraca bridge. It complements two previous IFC investments in the ring road: a loan of €10.1 million (the equivalent of approximately $11.9 million) to construct the eastern portion in 2010, and €10.7 million (the equivalent of approximately $12.6 million) in 2012 to construct the Ribnica bridge. Both projects have been completed successfully.
“Having IFC as a long-term partner enables us to continue working on the development of this vital road infrastructure, which is helping to reduce congestion, lower greenhouse gas emissions, and reduce vehicle operating costs,” said Slavoljub Stijepovic, Mayor of Podgorica.
Road projects have been recognized as a priority for the country, to eliminate a critical bottleneck for regional transport along the corridor connecting Serbia to the Adriatic Coast and support the tourism industry, which is critical to the local economy. IFC’s engagement has already assisted in reducing the travel time along the eastern side of the ring road from 12.5 minutes to 7.5 minutes.
“IFC has a strong partnership with the city of Podgorica, as this third investment highlights, and we hope to expand our support to other parts of Montenegro,” said Thomas Lubeck, IFC Regional Manager for Central and South East Europe. “The financing we provide to Podgorica reflects our strong commitment to improving municipal infrastructure for a better quality of life for citizens.”
IFC is also providing comprehensive support to Podgorica to build capacity and meet global best practices in project development through its Cities Platform, funded by the Austrian Federal Ministry of Finance. This includes improving project procurement, implementation standards, and local capacity for environmental and social risk management and reporting. IFC recently led a two-day training for the Podgorica Roads project team to familiarize them with IFC’s environmental health and safety requirements, and assist the city in developing a Communication and Stakeholder Engagement Plan.
Over the past decade, IFC has provided more than $12 billion in financing for 350 urban infrastructure projects globally and provided advisory services to cities in more than 60 countries.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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