August 5 2019

Bombardier-led consortium wins $4.5 billion monorail contract in Egypt

Source: Reuters

(Reuters) - A consortium led by Bombardier Inc said on Monday it had won a contract to build and operate two monorail lines in Egypt for more than $4.5 billion.

The project, for which Bombardier’s rail division had emerged as the preferred bidder, would be its largest in recent years, with the company having a $2.85 billion share of the contract. Orascom Construction will have a share of about $900 million.

The project, signed with the National Authority for Tunnels in Cairo, includes a 54-kilometre monorail system connecting the New Administrative City with East Cairo and a second 42-kilometre line linking 6th October City with Giza.

As part of the contract, Bombardier Transportation will design, supply and install the electrical and mechanical equipment for the two lines.

The consortium, which also includes Eqypt’s Arab Contractors, will be responsible for the operation and maintenance of both lines for 30 years.

Bombardier is in the middle of a broader restructuring, shedding underperforming commercial plane programs to focus on its more profitable jet and rail units.

The Montreal-based plane and train maker lowered its full-year core earnings and free cash flow forecasts, and reported a quarterly loss last week, as the company wrestles with challenges in the rail division, its largest by revenue.