July 4, 2005
By Lucille Davie
THE long-awaited Gautrain announcement was made at the weekend: the Bombela Consortium has been chosen to build the high-speed train over the next four-and-a-half years, in a public-private partnership (PPP).
Gauteng Premier Mbhazima Shilowa, describing the project as "a major step in the direction of a new and better Gauteng", said the delay in making the announcement was caused by the need to include a Best-and-Final-Offer phase.
This was necessary because of differences in the interpretation of "the output specification, the greenfield nature of the project, the requirements arising out of the Environmental Impact Assessment, and the associated risk pricing with particular emphasis on geological conditions and integration".
Shilowa described the project as the "biggest PPP project ever tackled in the country, and indeed in Africa".
Gauteng MEC for finance and economic affairs Paul Mashatile added that the Gautrain would not be implemented in isolation but would be "integrated with other national and provincial public transport initiatives - existing and planned".
He said the next phase was to negotiate a final concession agreement with Bombela, with the aim of achieving financial closure, a process that will take about six months.
Construction will begin in early 2006 and will be completed in time for the Soccer World Cup in 2010.
The project is expected to provide 148 000 jobs; promote the use of public transport; alleviate the congested highway between Johannesburg and Tshwane; and stimulate Gauteng's economy.
It is predicted that Gauteng's gross geographical product will rise by 0,7 percent to 1 percent, as a result of the Gautrain.
Such was the importance of the project, said Shilowa, it had received the backing and support of the national Department of Transport.
The national Treasury has given the necessary approval for the Gautrain. The framework for negotiations with Bombela, and the affordability limit have also been set by the Treasury.
"We have agreed with the national Department of Transport that we should jointly ensure that we use the Gautrain as a catalyst to promote public transport and to ensure that there are high levels of integration with other modes of transport in the province," Shilowa said.
The project will ensure broad-based black economic empowerment (BEE) and the development of small, medium and micro enterprises, with the participation of women.
Shilowa said targets for empowerment were set, and Bombela had exceeded these targets. A target for equity participation was set at 15,3 percent - Bombela has a target of 25,6 percent; procurement from BEE companies was set at 29 percent - Bombela's BEE component stands at 41 percent, or a value of R1,3-billion.
A target of 32 percent for sub-contracting from BEE companies was set, and Bombela exceeds this target by 10 percent, or R2,8-billion. The target for sub-contracting to new BEEs has been exceeded by 8 percent, to the value of almost R2,7-billion.
Bombela also indicated that R54-million would be spent on social investment programmes.
The Bombela Consortium is a partnership between Bombardier Transportation, Bouygues Travaux Publics, Murray & Roberts, the Loliwe companies and RATP Développement.
Bombela is 50 percent owned by its international partners and 50 percent by Murray & Roberts and the Loliwe companies of South Africa, the consortium's black economic empowerment component.
The civil works of the 80km route linking Johannesburg, Tshwane and the Johannesburg International Airport, will be undertaken by Bouygues Construction, Murray & Roberts and Loliwe Rail Contractors and will take four-and-a-half years.
The route will include the construction of 10 stations (three of which are underground), 20km of tunnel section, 9km of viaducts and bridges and 10 million cubic metres of earthworks.
Bombardier Transportation and Loliwe Rail Express will be responsible for delivering the rolling stock, with final assembly taking place in South Africa. Operation and maintenance of the system will be carried out for 15 years by RATP Développement in association with its South African partners, through a local operating company.
Thereafter the contract will be transferred to the Gauteng government.
Bombela will supply Bombardier's "highly successful Electrostar train system", assembled in South Africa.
Bus feeder services will be provided by a new BEE company, jointly owned by Unitrans and a company whose shareholders include black transport operators and trusts representing taxi operators and traders.
Shilowa emphasised that a project of this nature usually took 14 years from inception to completion. It was anticipated that this project, which was originally announced in 2000, would take 10 years to complete.
Mashatile stated that it would be premature to speculate on the cost of the project, which was originally punted to be about R7-billion.
Shilowa concluded, "Gautrain is a project that will make Gauteng, and indeed South Africa, proud."
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