The Cairo Monorail is a priority public service project for Egypt, under development by a consortium of first-class international contractors including Bombardier Transportation, Orascom Construction and Arab Contractors. With a total project cost in excess of US$4.5 billion, it will bring environmentally friendly and low cost transportation to huge numbers of Cairo residents across the city. It is the first monorail project in North Africa and, once complete, will be the longest monorail system in the world at a combined 98.5 km. It is expected to open in 2023.
John Meakin, Global Head of Export & Agency Finance at J.P. Morgan commented:
“The financing came together at the height of the pandemic, which would not have been possible without the commitment of all parties involved, including strong support from the lawyers. The project is of significant national importance to Egypt, and we are honoured to have been selected by NAT and the Government of Egypt to deliver this UKEF-backed financing, which will enable this major project to become a reality.”
International Trade Secretary Liz Truss 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."
Commenting, Ashurst partner Tom Longmuir said:
"This is a transformational infrastructure project, which will generate huge social benefits for Cairo residents and for Egypt. We are delighted to have assisted J.P. Morgan and UK Export Finance in bringing a complex financing to a successful close in testing market conditions."
The financing is UK Export Finance's largest-ever guaranteed financing outside of the defence sector.
Ashurst's International Projects Group deployed a cross-border team led by Paris partner Tom Longmuir, including Dubai partner Yvonne Cross, London counsel Thomas Karalis and Paris associate Samia Khennous. Ashurst worked in collaboration with Zaki Hashem & Partners in Egypt, whose team was led by Ragia Omran working with senior associate Peter Maurice.
White & Case acted for the National Authority for Tunnels and the Ministry of Finance, with a team led by partners Tarek Mohanna and Ziad Gadalla, as well as associate Nour Ghaleb.
