Largest £1.7bn UK export guarantee goes to Bombardier
Topics: BOMBARDIER UK
International Trade Secretary Liz Truss today announced the government guarantee, which will support highly skilled jobs in Derbyshire as the UK builds back better in the aftermath of coronavirus.
Bombardier’s consortium was named preferred bidder for the project at the 2020 UK-Africa Investment Summit and, with UKEF’s guarantee, has secured the financing needed to fulfil the contract and start production. Bombardier can now invest in its manufacturing centre in Derby where the trains for the Egyptian monorails will be designed and built.
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 two electrified monorails that together will transport millions of people every year in the Cairo metropolitan area. The new lines will connect the New Administrative City with East Cairo and 6th October City with Giza.
The monorails are a part of Egypt’s plans to build a sustainable transportation infrastructure that can cope with its growing population while reducing climate change impacts.
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.
The UKEF supported Buyer Credit facility will be administered by JP Morgan acting as the Initial Mandated Lead Arranger and the Facility Agent. Reinsurance support has also been secured with the help of Italian ECA SACE and Spanish ECA CESCE. ■