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R9.7bn Moloto Corridor project reaches valuation phase

R9.7bn Moloto Corridor project reaches valuation phase
Photo by Duane Daws

25th July 2014

By: Natalie Greve
Creamer Media Contributing Editor Online

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The long-awaited Moloto Corridor Project, between Gauteng and Mpumalanga, has, after some delay, reached the full value assessment and economic evaluation phase of its ongoing feasibility study, bringing nearer the likelihood that these neighbouring provinces could soon enjoy an integrated rail transport link.

Transport Minister Dipuo Peters indicated in a recent Parliamentary response that, once the valuation of the estimated R9.7-billion project was completed, the department expected to conclude the final procurement and implementation plan and submit this to National Treasury for approval by the end of September.

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“[As] the Moloto Corridor Project is a registered public–private partnership (PPP), it must be conducted in accordance with Treasury regulations, which stipulate that six analyses must be concluded as part of the feasibility study. The penultimate of which is the valuation assessment – a study we are currently advancing,” she outlined.

The initial needs-analysis phase was completed in February 2013 and was followed by the options analysis phase, from which the rapid-rail option was recommended in November as the preferred mode of transport.

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At a subsequent political oversight committee (POC) meeting in December, the rapid-rail option was endorsed and a further detailed investigation of the option was now being conducted with the aim of completing the feasibility study by September.

The POC further resolved that a project implementation and management office (PIMO) be established at the Passenger Rail Agency of South Africa (PRASA), as the body responsible for commuter rail services, to advance the project to completion.

“The implementation of the integrated rapid-rail solution on the Moloto Corridor will be handled by PRASA. On August 5, I will launch the PIMO, which will be responsible for the technical implementation of the project at PRASA,” said Peters.

She added that the advancement of the project had been delayed by issues around the finalisation of the PPP’s funding model and by the local community having occupied land identified for the project.

The Moloto project was expected make use of a wider-gauge railway line, similar to the Gautrain, enabling it to accommodate high-speed trains.

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