Proposed Lending of US$215 Million Approved as part of a New Country Partnership Strategy for Montenegro
WASHINGTON, January 31, 2011 - The World Bank Board of Directors today approved a new Country Partnership Strategy (CPS) for Montenegro, providing the framework for the World Bank’s assistance to Montenegro during the period 2011–14. The CPS reflects both Montenegro’s status as an upper middle income country with well-defined development priorities and its overarching policy objective of advancing the process of integration into the European Union (EU).
The CPS proposes a lending program of US$215.7 million that aims at supporting Montenegro to address two of its main policy priorities: to strengthen institutions and competitiveness in line with EU accession requirements and improve environmental management, including reducing the costs of environmental problems.
The centerpieces of this CPS will be (i) the support provided for building a more resilient financial sector through two successive development policy operations in 2011 and 2012; and (ii) two new investment lending operations for higher education, science, and innovation; and hazardous industrial waste clean-up and management.
In addition, the CPS foresees a smaller investment to facilitate Montenegrin participation in a Regional Catastrophe Risk Insurance Facility. In 2013, the Government of Montenegro and the World Bank will formally review progress under this CPS, which—on the basis of the successful implementation of the portfolio within the time horizons foreseen—would permit one additional project in a yet to be determined priority sector.
“At this critical juncture, Montenegro has a tremendous opportunity to make strategic decisions that would place its economy on a trajectory of dynamic, sustainable, and inclusive growth,” said Jan-Peter Olters, World Bank Representative in Montenegro. “The World Bank is looking forward to supporting the Government of Montenegro with this four-year strategy to implement economic policies that would reinforce fiscal and environmental sustainability, improve productivity, innovation, and competitiveness, and strengthen the business and investment climate so as to be able to increase the prosperity of its citizens.”
The International Finance Corporation (IFC) is expected to provide advisory services to help improve the business climate and country competitiveness, and make new investments in private companies as opportunities arise. Its expected level of support will be on the order of US$40–50 million over the CPS period.