PWW Deponija d.o.o. Jagodina

completed

Founded in 1869, PORR Group (“PORR” or the “Group”) is one of the oldest and largest construction groups in Austria. The Group has successfully expanded into Central and Eastern Europe (Germany, Switzerland, Czech Republic and Slovenia) and sees investment and new business opportunities in the Former Yugoslav Republics (FYR) of Serbia, Montenegro, Bosnia and Herzegovina (BiH) and potentially FYR Macedonia. One of the projects that PORR wants to develop in Serbia is the landfill site in the municipality of Jagodina. The city authorities have awarded 25-year concession, under a PPP (Public Private Partnership) scheme, for the design, construction, finance and operation (DBFO) of a new regional recycling center and municipal solid waste (MSW) disposal site for non-hazardous household waste to the Consortium “PWW” formed by PORR Umwelttechnik GmbH ("PUT"), a PORR subsidiary, and Werner & Weber Warenhandels-Gesellschaft m.b.H. ("WW"). Via the Holding Structure PORR and Werner & Weber each holds 50% of the Consortium shares. The project consists of financing PWW’s investment plan that includes financing to support the construction and operations of the new “Gigos” municipal solid waste, including deployment of landfill gas (LFG) collection and flaring, located approx 11 km from the city centre and the construction of the recycling centre, located in the industrial zone of Jagodina, for the Regional Waste Management Associations (RWMA) “Jagodina Okrug”. The landfill site will have a capacity of 80,000 tonnes / year of waste and the recycling centre will be able to process max 200 tonnes /day waste. The completion of the landfill and the recycling centre and start of the operations is planned for 3Q2009. The collection services will be provided by a 20%/80% JV between the Municipality of Jagodina and PWW(the “Collection Company Jagodina”), while PWW Deponija Jagodina, a 100% PWW-owned special purpose vehicle (“Deponija Jagodina”), which will be the borrower under the IFC’s Subordinated Loan Agreement, will build and operate both the recycling centre and the landfill operation. Gradevinsko Preduzece d.o.o., a 100% PORR-owned subsidiary, will act as a prime contractor for the construction of the landfill, based on a turnkey contract.In June 2008, IFC and PORR AG concluded an agreement under whose terms IFC would provide financial support to real estate, waste management or waste water treatment projects to be developed by the Group in Central and Eastern European countries. IFC’s environmental and social review of the 2008 agreement can be viewed on IFC’s website at the following link: Project #26457PORR intends to use funding made available under this 2008 agreement to support the Jagodina waste management project described above.