IFC Promotes Sustainable Infrastructure and Property Development in Southeast Europe:
First Multiloan Facility for Austrian Construction Company, Porr AG
In Washington, D.C.:
Carmen Powell
Phone: +1 (202) 473 4982
E-mail: CPowell@ifc.org
In Belgrade:
Slobodan Brkic
Phone: +381 11 3023 750
E-mail: SBrkic@ifc.org
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.
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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