Date: 02/07/2005
Source: Department of Finance and Economic Affairs
Title: Mashatile: Announcement of Gautrain preferred bidder
Announcement of preferred bidder for Gautrain, Speech by Gauteng MEC for Finance and Economic Affairs, Paul Mashatile
Everyday a lot of dedicated people roll up their sleeves to work towards making our Province a better place. Mostly it is hard work and mostly it requires giving attention to a lot of small things that taken together will make a difference. Then, on occasion, we work on a project that stirs up the imagination and inspire people much wider than those working on it. The Gautrain Rapid Rail Link is such a project.
In the streets, in the cafes and coffee shops, around dinner tables, in the board rooms of big and small corporations, in places of learning and around newsrooms, people have been discussing this project. Some cannot wait to board the train; others have used their freedom of speech to disagree with us.
We have already stopped at a number of important stations or milestones along our route. In 2000/2001 we did a feasibility study, followed by an extensive Environmental Impact Assessment (EIA). In September 2003 we had received a favourable Record of Decision for the EIA. Since February 2002 we have run the tender process and today, we have reached the next significant milestone of announcing the preferred bidder. We are now moving the project to the next phase based on our commitment to make Gauteng a better place, a place where people will have the choice of a world-class public transport mode.
Gauteng remains the main contributor to our country's economy, accounting for 33% of South Africa's Gross Domestic Product (GDP). It is the largest sub-Saharan economy, accounting for about 10% of Africa's GDP. In the past five years, our provincial economy grew at an annual rate of 3.7%, increasing to over 5% in 2004. Our Province is also responsible for 49.6% of all employee remuneration in our country and 52% of all turnover of institutions. Although this is good news for our economy, it has a detrimental effect on the mobility of the people of Gauteng
Central to the development of any economy lies the country’s transport infrastructure development. The powerhouse of South African economic activity, the Gauteng Province, illustrates its commitment in this regard with the Gautrain Project. We confirm the need for critical infrastructure projects and investment by implementing this flagship project in partnership with the private sector. It is important to note here that the Gautrain will not be implemented in isolation but that it will be integrated with other National and Provincial public transport initiatives – existing and planned.
The Gautrain Project is an integral part of the Gauteng Growth and Development Strategy (GDS) and is linked to the development of infrastructure, ensuring the movement of people, goods and services. Our GDS provides a practical framework to substantially raise the economic growth rate and create sustainable jobs. It is estimated that this project will create 148 000 jobs and that its contribution to the Province’s GGP will be between 0.7% – 1.0%.
This means that the Gautrain will assist in meeting some of the objectives of the GDS by provide social and economic infrastructure to stimulate job creating growth in an environmental sustainable manner. It will also meet the GDS requirements for Broad Based Black Economic Empowerment (BBBEE) in terms of broadening ownership and control; skills transfer and preferential procurement.
With the announcement of the preferred bidder, we now enter the next phase of negotiating a final concession agreement with the preferred bidder and achieving financial closure. This will take approximately 6 months. This contract will set the framework for the project not only during the construction phase but also during the 15 year operational phase, where-after the project will be transferred back to Government free of charge. The contract is therefore very important, very extensive and very complex.
Soon after the preferred bidder has been announced the final route proclamation process will commence with the publishing of the land required for the project in a Preliminary Design Report, followed by the actual proclamation. During this process the final surveying and valuation of the land will be done so that the expropriation can commence after the proclamation. I would also like to indicate that the necessary steps have been taken and systems are in place to ensure that this proceeds smoothly.
After the contract has been finalised, construction will commence. The construction period allowed for is 54 months which means that the project will be completed a few months before the FIFA Soccer World Cup in 2010.
Today’s announcement of the preferred bidder is only a milestone towards financial closure. Because today’s announcement of the preferred bidder does not conclude the procurement process, it would be premature to announce any cost as this would seriously jeopardise the next phase of the procurement process. I would like to emphasise, however, that the final contract amount will be within the affordability limit as set out by Treasury Authorisation 1 (TA1).
I would like to take the opportunity today to thank the media for their objective and responsible reporting on the Gautrain Project. The media has assisted in keeping interested and affected parties informed as the Environmental Impact Assessment process unfolded. You kept the public not only informed but well versed in the broad outlines of the project programme. You have been indeed responsible for an informed debate.
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial Government
2 July 2005
Source: Department of Finance and Economic Affairs
Title: Mashatile: Announcement of Gautrain preferred bidder
Announcement of preferred bidder for Gautrain, Speech by Gauteng MEC for Finance and Economic Affairs, Paul Mashatile
Everyday a lot of dedicated people roll up their sleeves to work towards making our Province a better place. Mostly it is hard work and mostly it requires giving attention to a lot of small things that taken together will make a difference. Then, on occasion, we work on a project that stirs up the imagination and inspire people much wider than those working on it. The Gautrain Rapid Rail Link is such a project.
In the streets, in the cafes and coffee shops, around dinner tables, in the board rooms of big and small corporations, in places of learning and around newsrooms, people have been discussing this project. Some cannot wait to board the train; others have used their freedom of speech to disagree with us.
We have already stopped at a number of important stations or milestones along our route. In 2000/2001 we did a feasibility study, followed by an extensive Environmental Impact Assessment (EIA). In September 2003 we had received a favourable Record of Decision for the EIA. Since February 2002 we have run the tender process and today, we have reached the next significant milestone of announcing the preferred bidder. We are now moving the project to the next phase based on our commitment to make Gauteng a better place, a place where people will have the choice of a world-class public transport mode.
Gauteng remains the main contributor to our country's economy, accounting for 33% of South Africa's Gross Domestic Product (GDP). It is the largest sub-Saharan economy, accounting for about 10% of Africa's GDP. In the past five years, our provincial economy grew at an annual rate of 3.7%, increasing to over 5% in 2004. Our Province is also responsible for 49.6% of all employee remuneration in our country and 52% of all turnover of institutions. Although this is good news for our economy, it has a detrimental effect on the mobility of the people of Gauteng
Central to the development of any economy lies the country’s transport infrastructure development. The powerhouse of South African economic activity, the Gauteng Province, illustrates its commitment in this regard with the Gautrain Project. We confirm the need for critical infrastructure projects and investment by implementing this flagship project in partnership with the private sector. It is important to note here that the Gautrain will not be implemented in isolation but that it will be integrated with other National and Provincial public transport initiatives – existing and planned.
The Gautrain Project is an integral part of the Gauteng Growth and Development Strategy (GDS) and is linked to the development of infrastructure, ensuring the movement of people, goods and services. Our GDS provides a practical framework to substantially raise the economic growth rate and create sustainable jobs. It is estimated that this project will create 148 000 jobs and that its contribution to the Province’s GGP will be between 0.7% – 1.0%.
This means that the Gautrain will assist in meeting some of the objectives of the GDS by provide social and economic infrastructure to stimulate job creating growth in an environmental sustainable manner. It will also meet the GDS requirements for Broad Based Black Economic Empowerment (BBBEE) in terms of broadening ownership and control; skills transfer and preferential procurement.
With the announcement of the preferred bidder, we now enter the next phase of negotiating a final concession agreement with the preferred bidder and achieving financial closure. This will take approximately 6 months. This contract will set the framework for the project not only during the construction phase but also during the 15 year operational phase, where-after the project will be transferred back to Government free of charge. The contract is therefore very important, very extensive and very complex.
Soon after the preferred bidder has been announced the final route proclamation process will commence with the publishing of the land required for the project in a Preliminary Design Report, followed by the actual proclamation. During this process the final surveying and valuation of the land will be done so that the expropriation can commence after the proclamation. I would also like to indicate that the necessary steps have been taken and systems are in place to ensure that this proceeds smoothly.
After the contract has been finalised, construction will commence. The construction period allowed for is 54 months which means that the project will be completed a few months before the FIFA Soccer World Cup in 2010.
Today’s announcement of the preferred bidder is only a milestone towards financial closure. Because today’s announcement of the preferred bidder does not conclude the procurement process, it would be premature to announce any cost as this would seriously jeopardise the next phase of the procurement process. I would like to emphasise, however, that the final contract amount will be within the affordability limit as set out by Treasury Authorisation 1 (TA1).
I would like to take the opportunity today to thank the media for their objective and responsible reporting on the Gautrain Project. The media has assisted in keeping interested and affected parties informed as the Environmental Impact Assessment process unfolded. You kept the public not only informed but well versed in the broad outlines of the project programme. You have been indeed responsible for an informed debate.
Issued by: Department of Finance and Economic Affairs, Gauteng Provincial Government
2 July 2005
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