Bondholder Bombardier Transportation has been named preferred bidder to build and supply a new monorail system in Cairo, Egypt with the rolling stock part of the order to be developed and built in Derby.
The potential value of the bid for Bombardier Transportation is €1.2 billion for the Design & Build Contract. In addition, there is a 15+15 years Operations and Maintenance deal with a potential value of about €1.1 billion.
The project is for the delivery of a 54km monorail system connecting the New Administrative City with East Cairo as well as a second 42km line connecting 6th October City with Giza. Bombardier Transportation will deliver the project in partnership with two Egyptian companies Orascom Construction and the Arab Contractors.
Phil Hufton, managing director of Bombardier Transportation, said the monorail was "a new product line". He said: "It will create a situation where we will probably employ about 100 people on this contract - that includes apprentices as well."
Mr Hufton added that it was "excellent news for Bombardier and for our teams in the UK and in Egypt".
"It shows that the British rail industry is world class and can compete and win in global markets," he said.
International Trade Secretary Liam Fox said: "This is a strategically important project in a growing market like Egypt, demonstrating how UK manufacturing expertise is competing and winning in global markets against tough competition.
"The British rail industry is world class. Derby has been making trains for 180 years, and this project shows that the Derby Litchurch Lane facility remains globally competitive."
This will be the first export of overseas rolling stock from the Derby facility since 2010 when Bombardier built trains for South Africa.
The order award is subject to contract and final confirmation.