Bombardier Set to Embark on Multi-Billion Pound Programme
for London's Underground in the U.K.
MONTREAL, QUEBEC--MAY 8, 2002 - 12:21 EDTBombardier Transportation, as a partner in the
Metronet Consortium, welcomed London Underground Ltd's signing of
the Share Purchase Agreement today, aimed at transferring to the
private sector for 30 years, the renewal, modernisation and
maintenance of London Underground's infrastructure. The agreement
will become effective when Financial Close is finalised, expected
later this year.
Once Financial Close is completed, Bombardier will receive
contracts from Metronet for the supply of rolling stock,
signalling and project management. It is expected that the value
of Bombardier Transportation's contracts will be in excess of
pounds sterling 3 billion ($6.9 billion Cdn) over the next 30
years. The first phase of the project will see Bombardier begin
re-signalling work, refurbishment of some rolling stock and
construction of prototype trains. Subsequently, the turnkey
contracts include the project management and the supply of 1,738
metro cars and new signalling systems for the Victoria Line and
Sub-Surface Lines, together with the maintenance of the rolling
stock. The new metro cars will be built in Bombardier's facility
in Derby, United Kingdom between 2008 and 2014.
In the first seven-and-a-half years of the 30 year contracts, the
Metronet Consortium will invest over pounds sterling 7 billion
($16.1 billion Cdn) upgrading, replacing and maintaining the
infrastructure of the Infracos BCV (Bakerloo, Victoria, Central
and Waterloo & City Lines) and Infraco SSL (the Sub-Surface Lines
- Circle, Hammersmith & City, Metropolitan and East London).
The five equal shareholders of Metronet (Balfour Beatty,
Bombardier Transportation, Seeboard, Thames Water and WS Atkins)
plan to invest pounds sterling 350 million ($805 million Cdn) of
equity in equal shares of pounds sterling 70 million ($161 million
Cdn). Metronet Rail SSL Finance plc and Metronet Rail BCV Finance
plc intend to raise a further two-and-a-half billion pounds ($5.75
billion Cdn) in the debt markets.
Pierre Lortie, President and Chief Operating Officer of Bombardier
Transportation, said "The signing of the Share Purchase Agreements
is an important milestone. We look forward to the completion of
the final stages of the Public-Private-Partnership (PPP) process
to enable Financial Close to be effected and the transfer of the
two Infracos to Metronet. Work will then begin in earnest,
bringing significant improvements to the London Underground system
that will benefit passengers and London."
Bombardier Transportation is the global leader in the rail
equipment manufacturing and servicing industry. Its wide range of
products includes passenger rail cars and complete rail
transportation systems. It also manufactures locomotives, freight
cars, propulsion & controls and provides rail control systems.
Bombardier Inc., a diversified manufacturing and services company,
is a world leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It also provides financial services and asset management
in business areas aligned with its core expertise. Headquartered
in Montreal, Canada, the Corporation has a workforce of some
80,000 people in 24 countries throughout the Americas, Europe and
Asia-Pacific. Its revenues for the fiscal year ended Jan. 31, 2002
stood at $21.6 billion. Bombardier trades on the Toronto, Brussels
and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
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NOTES TO THE EDITOR:
Metronet
Metronet is a consortium made up of five world class shareholders
bidding for the Public Private Partnership Infraco contracts for
London Underground. The consortium, formed in the summer of 1999
and is made up of five equal partners Balfour Beatty plc,
Bombardier Transportation, SEEBOARD Group plc, Thames Water Plc
and WS Atkins plc. The consortium has unrivalled expertise in
project management and planning, railway engineering and asset
management and a wide range of other technical disciplines.
About the Consortium Members
* Balfour Beatty One of the largest engineering, construction and
asset management groups in the United Kingdom. It operates across
a range of geographical and product service markets but with a
strong orientation towards the engineering, financing,
construction, maintenance and assent management of infrastructure.
It carries out over pounds sterling 600 million per annum of work
for railway customers, making it the largest contracting and
service business for fixed railway infrastructure in the United
Kingdom and one of the largest in the world.
* Bombardier Transportation Please refer to the Press Release.
* Seeboard Sells gas and electricity to customers throughout the
UK. In its traditional heartland of Kent, Sussex and large parts
of Surrey, it owns, operates and maintains an electricity network
of over 45,000km (28,000 miles) of overhead lines and underground
cables. With its headquarters in Crawley, West Sussex, SEEBOARD
employs around 3,500 staff and has a turnover of more than a
billion pounds a year. The company is a member of AEP, based in
Columbus, Ohio. SEEBOARD Powerlink, owned by SEEBOARD, Balfour
Beatty and ABB, has the 30-year contract to operate, maintain,
finance and renew London Underground's high-voltage power
distribution network.
* Thames Water One of London's largest and most experienced
infrastructure managers operating a major network of pipes and
sewers under the congested streets of the capital. These include
the 80km long Thames Water Ring Main, one of the largest
tunnelling projects undertaken in London since the Tube was first
constructed. Thames Water already works closely with London
Underground on the rising water problems.
* WS Atkins One of the world's leading providers of professional,
technologically based consultancy and support services. It
already undertakes significant consultancy work for London
Underground and is the UK's leading railway engineering business
with expertise in safety, design, electrification and signalling.
About Metronet Rail SSL Finance plc and Metronet Rail BCV Finance
plc
Metronet Rail SSL Finance plc and Metronet Rail BCV Finance plc
are wholly owned subsidiaries of Metronet Rail SSL Holdings Ltd
and Metronet Rail BCV Holdings Ltd. respectively.
The purpose of these companies is to act as vehicles for the
holding of bond finance, management and release of this finance to
the operating companies as and when required. |
