Multi-billion rand Gautrain expansion ‘not anywhere near approval’: transport MEC
Gauteng MEC for transport, Ismail Vadi says that reports of the ‘imminent’ approval of the multi-billion rand expansion of the Gautrain may have given the impression that things were progressing faster than they are.
Speaking to Talk Radio 702 on Monday, Vadi said that he didn’t think the project is anywhere near approval stage as yet, and talks with National Treasury had in fact resulted in a request to re-look at the financial modelling of the expansion, as well as the demand for the services along the routes.
The Gautrain Management Agency (GMA) completed the feasibility study for the extension to the existing Gautrain network and submitted it to National Treasury for approval in April 2017.
A decision on the awarding of Treasury Authorisation (TA 1) for the project was expected in the latter half of 2018.
Only once approval has been granted can the planning and Environmental Impact Assessment of Phase 1 begin.
The Gautrain expansion project is envisioned over two phases, ultimately with the goal to link 19 new Gautrain stations to the system, including a link to Lanseria Airport.
The current 80km network will be extended by 150 kilometres over the next twenty years, including routes through Randburg, Fourways, and Soweto.
This expansion is expected to create 211,000 jobs, and will include a R19 billion procurement spend on black owned entities.
“The feasibility for the expansion has been completed, and this has been submitted to National Treasury for the approval process their side,” Vadi said.
“Treasury has come back to us and asked to do a bit more work on the financial modelling of this particular project. It will be a partnership between the private sector and government, and of course we need to see where government will get the money from before we can say yes or no to the project.”
Vadi said that in the interim more technical work is being done, particularly looking at the demand-side: assessing how many passengers will be catered for, how much demand or interest there will be in the services, and how the services will be rendered to the public.
“We’re also doing the preliminary road alignment,” he said. “Before you can even look at the construction phase, you need to do the alignment – see exactly where the tracks will be laid out.”
Once this work is done, Vadi said he hopes that Treasury will approve the first leg of the project, which he said is “critical”.
Read: Here’s how much the cost of riding the Gautrain has changed – 2011 vs 2018
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