(Quebec) If one day, in 4, 5 or 8 years, the Bombardier CSeries program knows a real success until he became very profitable, the Quebec government could not touch profit up to share 49.5% stake in the partnership created around the jet.
“It’s that Bombardier may redeem the government whenever he wants, at an interest of 3% or 4%, says a credible source close to the dossier. If Bombardier decide to buy it, the government will be forced to sell it. ”
“If ever the program is a failure,” they “obviously not redeem the government’s position,” said our interlocutor. The Quebec government “lose” while one billion US dollars, he said.
“But if the walking program, Bombardier will purchase the government’s position, so that the state, if it is redeemed with an interest of 3% or 4%, will be deprived of much of the profit of a possible success . ”
The Sun questioned the Minister of Transport, Jacques Daoust Friday about it. Mr. Daoust is the responsible for the file in the government of Philippe Couillard. He insisted that it is only a “Memorandum of Understanding” – which remains confidential – which was introduced last fall. Not the final agreement. The negotiations with Bombardier continues.
“We have a framework agreement to be finalized,” said Minister Jacques Daoust, adding that the parties still have to “agree to tweak each clause.”
When we told him that Bombardier could buy the share What invest the government against interest mainly covering borrowing costs, Mr. Daoust has hinted that it might be a request for Bombardier.
“It can be the demand for Bombardier, you know,” dropped the Minister before assuming that trading also enter to the government’s satisfaction.
Too busy that day, Friday, with the Uber file, the Minister had to talk again on Monday.
Finally, Jacques Daoust preferred not to talk of the subject. The current phase is too delicate, said on Monday a collaborator of the minister.
“The conditions of the redemption [from the government by Bombardier] are to be defined” as part of the negotiations still ongoing, has merely stated a spokesman for Bombardier.
The drafting of the final clauses is not going as smoothly as expected in October, when it was announced the MOU creating the partnership around the CSeries. The “definitive agreements” should be concluded on 1 January 2016 or at a time to be agreed between the two parties, it was said at that time.
The parties are now targeting the end of June to reach a final agreement.
The money has not been paid
A first “disbursement” of the government’s investment was to take place on 1 April – the first two. This capital of US $ 500 million has not been paid and no amount will be as the final agreements have not been signed, says one of the government side.
The second payment of US $ 500 million was to be made on June 30, the date now targeted for conclusion of final agreements.
The Partnership created around aircraft C Series must be owned 50.5% by Bombardier and 49.5% by the Québec government.
On Monday, the Premier of Quebec, Philippe Couillard, has again urged Ottawa to contribute to the CSeries program.