Derby’s Bombardier has won a £1.7 billion guarantee from the UK Government so that it can build two big monorail schemes in Egypt.

UK Export Finance (UKEF) is backing the huge deal which will support UK exports and protect jobs in the East Midlands.

The government body – which provides a safety net to ensure UK exports are not hindered by lack of finance or insurance – said it would be the first export of UK-built trains for over 12 years.

It is also the biggest amount of financing UKEF has ever provided for an overseas infrastructure project.

UKEF said the UK was by far the biggest foreign direct investor in Egypt.

The monorails are part of Egypt’s plans for a sustainable transportation system that can cope with its growing population while reducing carbon emissions.

The 34 miles of rail will transport millions of people each year in the Cairo metropolitan area, connecting the New Administrative City with East Cairo and 6th October City with Giza. Around 280 carriages will be built.

Bombardier Transportation is leading a consortium – in partnership with Egyptian companies Orascom Construction and Arab Contractors – which was named preferred bidder.

The train maker can now invest in its manufacturing centre in Derby where the monorail trains will be designed and built.

It will be the UK’s only monorail car production line and support 100 UK jobs at the company and many more in its UK supply chain.

Matt Byrne, president of Bombardier Transportation (UK and Ireland), said: “The Cairo Monorail export win, against international competition, shows that the UK rail sector can fight and win in key growth markets such as sustainable transport.

“This is the first UK export since our Derby-built trains were exported to South Africa for the Gautrain project in 2008.

“Thanks to UKEF’s support and those working in Embassies across North Africa, this new deal will bring sustainable benefits to Egypt and create job opportunities in the UK.”

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.

“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."

Bombardier employs 4,000 people in the UK, with around 2,000 in Derby including more than 400 specialised engineers, who develop and build trains for UK rail operators.