The UK Export Finance (UKEF) is providing a £1.7 billion (EUR 1.92 billion) buyer credit facility for the consortium of Bombardier Transportation (leader), Orascom Construction and Arab Contractors for the Cairo monorail project.
This is UKEF’s largest amount of financing ever provided for an overseas infrastructure project.
“One third of our economy is exports. That’s why support from our export credit agency is vital. It can help the UK get a bigger slice of the global economic pie, secure jobs across the country and make the most of our newfound independence as a trading nation,” International Trade Secretary Liz Truss said.
The governmental guarantee will support highly skilled jobs in Derbyshire as the UK builds back better in the aftermath of coronavirus. With this guarantee, Bombardier has secured the financing needed to fulfil the contract and start the design and production of the vehicles at its manufacturing centre in Derby.
This will be the UK’s only monorail car production line and will directly support 100 UK jobs at the company and many more in its UK supply chain.
Bombardier employs 4,000 people in the UK, with around 2,000 in Derby including over 400 specialised engineers, who develop and build trains for rail franchises across Britain. This expertise will be used to build and maintain the two monorail lines that together will transport millions of people every year in the Cairo metropolitan area.
“The Cairo monorail export win, against international competition, shows that that the UK rail sector can fight and win in key growth markets such as sustainable transport,”Matt Byrne, president of Bombardier Transportation for UK and Ireland, said.
For Bombardier, this is the first UK export since its Derby-built trains were exported to South Africa for the Gautrain project in 2008. Bombardier also sees additional opportunities to increase its exports of UK built trains using its new production line as global demand for fast, sustainable public transportation solutions increases.
In 2019, the Egypt’s National Authority for Tunnels and the consortium signed a contract for the construction of two monorail lines in capital’s metropolitan area. The total value of the design, build and O&M contract is EUR 3.72 billion. Bombardier Transportation´s share is EUR 2.36 billion. Combined, Orascom Construction and Arab Contractor’s share of the overall contract is valued at approximately EUR 1.36 billion. Under the contract, Bombardier will deliver the Innovia Monorail 300 technology which includes the supply of 70 four-car Innovia Monorail 300 trains (280 cars) and the CityFlo 650 communications-based train control technology.
Orascom Construction will design and build all infrastructure and civil works, including stations, guideway structures and new depot buildings.
The monorail project covers the construction of two lines with a total length of 96 km. The first monorail line will be 54 km-long linking East Cairo with the New Administrative Capital. The second line will have a length of 42 km connecting 6thOctober City to Giza. These are the first mass transit links to connect Greater Cairo with New Capital City and 6 October City and will greatly improve mobility for Egyptian citizens.