PWW Deponija Dva d.o.o. Leskovac

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 Leskovac. The city of Leskovac has awarded the concession, under a PPP (Public Private Partnership) scheme, for the design, construction, finance and operation (DBFO) of a new municipal solid waste (MSW) disposal site for non-hazardous household waste as well as the local waste collection 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 collection services (the “Leskovac Collection Company”), will be provided by a 30%-70% JV between the Municipality of Leskovac and PWW while the landfill operation will be managed by PWW Deponija Dva d.o.o. Leskovac, a 100% PWW - owned special purpose vehicle which will be the borrower under the IFC’s Subordinated Loan Agreement (“Deponija Leskovac”). The project consists of financing PWW’s investment plan that includes financing to support the construction and operations of the new “Zeljkovac” municipal solid waste, including a recycling centre and deployment of landfill gas (LFG) collection, for the Regional Waste Management Associations (RWMA) “Jablanicki Okrug”. The completion of the landfill construction is planned for 2Q2009In 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 Leskovac waste management project described above.