IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 May 2016 | Removal date: open ended
Still in force

Trade finance

On 4 May 2016, the German Eximbank KfW announced it arranged a deal with five other international banks to provide financing for the expansion of the Gold Coast light rail system in Queensland, Australia.
The Eximbank did not disclose the amount of export credit but it did reveal that the contract for the expansion was awarded to CPB contractors, a subsidiary of the CIMIC Group which is part of the German Hochtief Group. The bank also mentioned that "With this new financing, it is helping to promote the sale of German and European vehicle technology worldwide, while strengthening its position in the Australian market".
 
A later press release from KfW (see second source below) stated that:
"Design modified in Australia, the light rail vehicles of the "Flexity" series, of which 1,700 are already operational worldwide, are produced by Bombardier Transportation in the eastern German city of Bautzen. A special design feature of these light rail vehicles is that the luggage racks have been adapted to accommodate surf boards to suit the demand requirements on the Gold Coast (e.g. Surfers' Paradise). Further deliveries of Bombardier Transportation will stem from Great Britain and Switzerland.
"The overall debt financing volume is 366 million Australian dollars (approx. 270 million EUR).
"Bombardier Transportation has its headquarters in Berlin and several production sites in Germany. The group employs more than 9,000 people in Germany and 16,400 at other locations in Europe."
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

495 Railway & tramway locomotives & rolling stock; parts
8603 Selfpropelled railway or tramway coaches, vans and trucks, other than those of heading 86.04.
860310 Powered from an external source of electricity
860390 Other
8607 Parts of railway or tramway locomotives or rollingstock.
860711 Driving bogies and bisselbogies
860712 Other bogies and bisselbogies
860719 Other, including parts
860721 Air brakes and parts thereof
860729 Other
860730 Hooks and other coupling devices, buffers, and parts thereof
860791 Of locomotives
860799 Other

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