Taxpayers guarantee £1.7bn Bombardier contract for Egyptian monorails
British taxpayers are providing a £1.7bn guarantee to a consortium led by train-maker Bombardier to build two new monorails in Egypt.
The backing comes from UK Export Finance (UKEF), which is underwriting the deal, in what the Government said was the largest British financing of a foreign infrastructure project.
The agreement means that Bombardier can now invest in its Derby manufacturing base where trains for the Egyptian monorails will be designed and built.
About 100 jobs at Bombardier will be supported by the contract, along with more roles in the company’s supply chain.
The new electric monorails are part of Egypt’s plan to create a sustainable transport network, and will link the New Administrative City with East Cairo and 6th October City with Giza.
Liz Truss, the International Trade Secretary, said: “Trade is an incredibly powerful way to propel growth and create jobs as we recover from the pandemic. This deal shows why we are so determined to get businesses to grasp these opportunities and take advantage of the support available from Government.
“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.”
UKEF is Britain’s state-backed export credit agency, which provides finance and insurance to help exporters win foreign sales, and picks up the tab if the customer fails to pay.
