Post on 24-Dec-2015
Gautrain Rapid Gautrain Rapid Rail LinkRail Link
Parliamentary Presentation toParliamentary Presentation toTransport Portfolio CommitteeTransport Portfolio Committee
Jack van der Merwe (Pr. Eng)Jack van der Merwe (Pr. Eng)Project Leader: GautrainProject Leader: Gautrain
Chief Executive: Public Private PartnershipsChief Executive: Public Private PartnershipsGauteng Provincial GovernmentGauteng Provincial Government
8 November 20058 November 2005
ContentContent
Background, rational & objectivesBackground, rational & objectives
System overviewSystem overview
PPP processPPP process
Selection of preferred bidderSelection of preferred bidder
Financial liabilitiesFinancial liabilities
Public transport integrationPublic transport integration
Way forwardWay forward
Background, Rational Background, Rational & Objectives& Objectives
Background Background
The Powerhouse of AfricaThe Powerhouse of Africa
Gauteng is:Gauteng is:
– Less than 2% of Country’s surface areaLess than 2% of Country’s surface area
– Home to 70% of the SA’s workforce and is responsible for Home to 70% of the SA’s workforce and is responsible for 49.6% of all employee remuneration 49.6% of all employee remuneration
– Accounts for some 33% of GDP of South AfricaAccounts for some 33% of GDP of South Africa
– Accounts for about 10% of Africa's GDP and is the fourth Accounts for about 10% of Africa's GDP and is the fourth largest economy in Africalargest economy in Africa
– In the past five years, our provincial economy grew at an In the past five years, our provincial economy grew at an annual rate of 3.7%, increasing to over 5% in 2004 annual rate of 3.7%, increasing to over 5% in 2004
– FDI has grown from R450 million in 2001 to R1.5 billion in 2003 FDI has grown from R450 million in 2001 to R1.5 billion in 2003
– Most developed infrastructure in Africa Most developed infrastructure in Africa
– The population is expected to exceed 9 million by the endThe population is expected to exceed 9 million by the endof 2004 of 2004
Gauteng – EconomicGauteng – EconomicDevelopment StrategyDevelopment Strategy
Existing economic strengths :Existing economic strengths :
– MiningMining
– Heavy IndustryHeavy Industry
– Financial & Banking sectorFinancial & Banking sector
Proposed strategy:Proposed strategy:
– Smart industriesSmart industries - Gauteng the “smart- Gauteng the “smart”” Province Province
– Move toward high value-added manufacturing Move toward high value-added manufacturing
– Enhancing the business services (Finance & Banking) sector Enhancing the business services (Finance & Banking) sector and business tourismand business tourism
Rationale Rationale
MobilityMobility AccessibilityAccessibility MaintenanceMaintenance
TransportTransportChallengesChallenges
Share of Gauteng inShare of Gauteng inNational Vehicle FleetNational Vehicle Fleet
00
55
1010
1515
2020
2525
3030
3535
4040
ProvincesProvinces
Western CapeWestern Cape
Eastern CapeEastern Cape
Northern CapeNorthern Cape
Free StateFree State
KwaZulu-NatalKwaZulu-Natal
North West ProvinceNorth West Province
GautengGauteng
MpumalangaMpumalanga
Northern ProvinceNorthern Province
GautengGauteng
Gauteng Vehicles/kmGauteng Vehicles/km
00
5050
100100
150150
200200
250250
300300
350350
ProvincesProvinces
Western CapeWestern Cape
Eastern CapeEastern Cape
Northern CapeNorthern Cape
Free StateFree State
KwaZulu-NatalKwaZulu-Natal
North WestNorth West
GautengGauteng
MpumalangaMpumalangaNorthern ProvinceNorthern Province
GautengGauteng
TRENDTREND
Objectives of the Objectives of the Gautrain ProjectGautrain Project
Development Goals Development Goals
Economic growth, development and job creationEconomic growth, development and job creation
Must meet other goals of Government (SME Must meet other goals of Government (SME promotion, Business tourism, BEE, etc.)promotion, Business tourism, BEE, etc.)
To promote business tourism by means of the link To promote business tourism by means of the link between JIA and Sandtonbetween JIA and Sandton
Transportation Goals Transportation Goals
Alleviate severe traffic congestion (traffic volumes in corridor growing Alleviate severe traffic congestion (traffic volumes in corridor growing at 7% p.a. for more than a decade)at 7% p.a. for more than a decade)
Show Government’s commitment to the promotion of Show Government’s commitment to the promotion of public transport (National Land Transport public transport (National Land Transport Transitional Act, Act 22 of 2000) – Catalyst public transport projectTransitional Act, Act 22 of 2000) – Catalyst public transport project
Improve the image of public transport with this project and attract Improve the image of public transport with this project and attract more car users to public transportmore car users to public transport
To link to the Tshwane Ring Rail Project, linking Mamelodi, To link to the Tshwane Ring Rail Project, linking Mamelodi, Atteridgeville and Soshanguve / MabopaneAtteridgeville and Soshanguve / Mabopane
Part of holistic transport plan and network for GautengPart of holistic transport plan and network for Gauteng
Catalyst public transport project of national importanceCatalyst public transport project of national importance
2000 Northbound and Southbound 2000 Northbound and Southbound Vehicle VolumesVehicle Volumes
2005 Northbound and Southbound 2005 Northbound and Southbound Vehicle VolumesVehicle Volumes
GautrainGautrain
Gautrain is a flagship public transport project of national Gautrain is a flagship public transport project of national importance. It can be the catalyst to free existing resources importance. It can be the catalyst to free existing resources or to generate new resources to promote public transport or to generate new resources to promote public transport in a holistic fashionin a holistic fashion
Spatial Development and Urban Spatial Development and Urban Planning GoalsPlanning Goals
To contribute towards urban restructuring, shortening To contribute towards urban restructuring, shortening travel distances and improving city sustainabilitytravel distances and improving city sustainability
Stimulate the renovation and upliftment of the Stimulate the renovation and upliftment of the Johannesburg and Tshwane CBDsJohannesburg and Tshwane CBDs
Link the main economic nodes in Gauteng with JIALink the main economic nodes in Gauteng with JIA
Overview of the Overview of the Proposed SystemProposed System
Rosebank
SandtonMarlboro
Rhodesfield
JIA
Midrand
Centurion
Pretoria
Hatfield
Preferred Route
Anchor Stations
Stations
Airport
Park Station
Rosebank
Park Station
SandtonMarlboro
Midrand
Centurion
PretoriaHatfield
Rhodesfield
JIA
Technical SpecsTechnical Specs International standard gaugeInternational standard gauge
Maximum speed: 160 – 180 km / hMaximum speed: 160 – 180 km / h
Modern state of the art trainsModern state of the art trains
– Thus totally different from existing SA systemThus totally different from existing SA system
Different trains for commuters and air passengersDifferent trains for commuters and air passengers
Initial demand 134 000 passengers trips per dayInitial demand 134 000 passengers trips per day
Frequency every 10 – 30 minutesFrequency every 10 – 30 minutes
Minimum operating hours 05h30 – 20h30Minimum operating hours 05h30 – 20h30
Safety and securitySafety and security
Interesting Facts Interesting Facts (1)(1)
Approximately 104 new commuter rail coaches willApproximately 104 new commuter rail coaches willbe manufacturedbe manufactured
Approximately 250 new bus coaches will be usedApproximately 250 new bus coaches will be used
3,6 million train kilometres and 674 million 3,6 million train kilometres and 674 million passenger kilometres will be travelled per yearpassenger kilometres will be travelled per year
10,6 million bus kilometres will be travelled per year10,6 million bus kilometres will be travelled per year
There will be a train at least every 10 minutes during There will be a train at least every 10 minutes during the peak time at stations between Johannesburg the peak time at stations between Johannesburg and Pretoria.and Pretoria.
Interesting Facts Interesting Facts (2)(2)
260 000 concrete sleepers will be manufactured for 260 000 concrete sleepers will be manufactured for use in the trackuse in the track
20 000 tons of steel will be required to manufacture 20 000 tons of steel will be required to manufacture the steel rail trackthe steel rail track
112 000 m² of bridges and viaduct structures will be 112 000 m² of bridges and viaduct structures will be constructedconstructed
More than 9 000 new parking bays will be requiredMore than 9 000 new parking bays will be required
65 road intersections in the vicinity of stations will 65 road intersections in the vicinity of stations will be upgraded be upgraded
Market & Market & RidershipRidership
Market FocusMarket Focus
House-House-hold hold IncomeIncome
Transport mode (Commuters)Transport mode (Commuters)RailRail TaxiTaxi BusBus CarCar
Commuter Market FocusCommuter Market Focus
Project Target MarketProject Target Market
Initial demand 134 000 passengers trips per dayInitial demand 134 000 passengers trips per day
Car users (Attract with excellent service / competitive Car users (Attract with excellent service / competitive travel times)travel times)
Complementing existing transport modes Complementing existing transport modes (Taxi, Bus & Rail)(Taxi, Bus & Rail)
Cater for all trip purposes (Peak and off peak)Cater for all trip purposes (Peak and off peak)
International tourists and airline passengersInternational tourists and airline passengers
Feeder and Distribution ServicesFeeder and Distribution Services
Access to the Gautrain - one of the key success factorsAccess to the Gautrain - one of the key success factors
Initially a large part of the market segment not within Initially a large part of the market segment not within walking access of stationswalking access of stations
Provide dedicated bus services:Provide dedicated bus services:
– Door-to-door service and travel timeDoor-to-door service and travel time
– Convenience of transfersConvenience of transfers
– Same quality and Level of Service offered from point of access Same quality and Level of Service offered from point of access to “front door” at destination end of tripto “front door” at destination end of trip
– Integration with existing and other new systemsIntegration with existing and other new systems
Ample park and ride facilitiesAmple park and ride facilities
10 km radius10 km radius10 km radius10 km radius
5 km radius5 km radius5 km radius5 km radius
Rail Line & Rail Rail Line & Rail Operational AreaOperational Area
Station PrecinctStation Precinct
Dedicated FeedersDedicated Feeders
Dedicated DistributorDedicated Distributor
Existing PT ServiceExisting PT Service
Catchment areaCatchment area
Rail Line & Rail Rail Line & Rail Operational AreaOperational Area
Station PrecinctStation Precinct
Dedicated FeedersDedicated Feeders
Dedicated DistributorDedicated Distributor
Existing PT ServiceExisting PT Service
Catchment areaCatchment area
Legend:Legend:Legend:Legend:
ConceptConcept
Modelled Single Journey FareModelled Single Journey Fare
SERVICESERVICE ORIGINORIGIN DESTINATIONDESTINATION DISTANCEDISTANCE COSTCOST
CommuterCommuter PretoriaPretoria JohannesburgJohannesburg 57 km57 km R 16,40R 16,40
CommuterCommuter PretoriaPretoria SandtonSandton 46,8 km46,8 km R 14,36R 14,36
CommuterCommuter RhodesfieldRhodesfield SandtonSandton 19,0 km19,0 km R 9,08R 9,08
AirportAirport JIAJIA SandtonSandton 20,4 km20,4 km R 70,40R 70,40
Cost less than car, more than existing bus / taxi / railCost less than car, more than existing bus / taxi / rail
Number of jobs created Number of jobs created / sustained:/ sustained:• ConstructionConstruction : 93 000: 93 000• Operating and MaintenanceOperating and Maintenance : 2 700 p.a.: 2 700 p.a.• Urban economic activityUrban economic activity : 40 000 p.a: 40 000 p.a..
Increase in Gauteng GGP Increase in Gauteng GGP : 0,7 - 1% : 0,7 - 1%
Increased business salesIncreased business sales : R 6 billion : R 6 billion
What Will the Economic Impact Be?What Will the Economic Impact Be?
PPP ProcessPPP Process
Project ProcessProject Process
Fundamental PrinciplesFundamental Principles
– Multi-billion Rand projectMulti-billion Rand project
– Cannot be funded in total by GovernmentCannot be funded in total by Government
– Can only be developed as a Public-Private PartnershipCan only be developed as a Public-Private Partnership
• PPP project (BOT type project)PPP project (BOT type project)
– Must have political buy-in & the private sector must show Must have political buy-in & the private sector must show an appetite for the PPP projectan appetite for the PPP project
– Must comply with all legal requirementsMust comply with all legal requirements
Implementation ProcessImplementation Process Four pillarsFour pillars
– Political will & commitmentPolitical will & commitment
– Viable project (base case design)Viable project (base case design)
• TechnicalTechnical
• FinancialFinancial
• Legal/InstitutionalLegal/Institutional
– Funding (for Infrastructure & Operations)Funding (for Infrastructure & Operations)
• Government’s portionGovernment’s portion
• Private Sector’s portionPrivate Sector’s portion
– Community acceptance & Buy-inCommunity acceptance & Buy-in
• Socio-economic benefitsSocio-economic benefits
• Power of expropriationPower of expropriation
ProcessProcessEXPENDITUREEXPENDITURE INCOMEINCOME CONSULTANTSCONSULTANTS
ConsortiumConsortium
Banks & Financial
Institutions
Banks & Financial
Institutions
Equity &Financing
Financial Model (BOT)Financial Model (BOT)
Pre-Qualification & RFPPre-Qualification & RFP
Final selection of bidderFinal selection of bidder
Financial ClosureFinancial Closure
ConstructionConstruction
CommissioningCommissioning
Civil WorksCivil
WorksElec. / Mech.Elec. / Mech.
Station &
Feeder
Station &
Feeder
Land & EIA
Land & EIA
Rolling Stock
Rolling Stock
Operate &
Maintain
Operate &
Maintain
FeasibilityFeasibility
En
gin
eering
, To
wn
Plan
nin
g an
d E
con
om
ic Develo
pm
ent
Fin
ancial an
d B
ankin
g
Leg
al and
Institu
tion
al
Authorisation
PPP-U3
Contractors
Modeling Rider ship
Modeling Rider ship
Value Add
Value Add
Operator RollingStock
Funding
Local International
Investment Aid
Funding
Local International
Investment Aid
Budget & Authorisation
Government
Gauteng National Treasury
Blue IQ PPP
Government
Gauteng National Treasury
Blue IQ PPP
PPP-U1
PPP-U2
PPP ComponentsPPP Components
Technical contentTechnical content
Financial proposalFinancial proposal
Legal mark-upLegal mark-up
Socio-economic DevelopmentSocio-economic Development
Socio-Economic Development Socio-Economic Development (1)(1)
BBBEEBBBEE
– EquityEquity
– OwnershipOwnership
– DirectorshipDirectorship
– Training & developmentTraining & development
– Sub contractingSub contracting
– ProcurementProcurement
– Job creationJob creation
Socio-Economic Development Socio-Economic Development (2)(2)
Promotion of SMME’sPromotion of SMME’s
Focus on women, youth and people with disabilitiesFocus on women, youth and people with disabilities
Local contentLocal content
Local labourLocal labour
Investment / focus on marginalised areasInvestment / focus on marginalised areas
PPP Requirements PPP Requirements (1)(1)
FeasibilityFeasibility
– Value for money Value for money
• Public Sector Comparator (PSC)Public Sector Comparator (PSC)(What will it cost if Government does the work through (What will it cost if Government does the work through normalnormalprocurement process; and including completion and procurement process; and including completion and integrationintegrationrisk and cost)risk and cost)
– AffordabilityAffordability
– Total cost of project, expressed in Net Present Value (NPV)Total cost of project, expressed in Net Present Value (NPV)
– Yearly cost to the province (contingent liability)Yearly cost to the province (contingent liability)
– Maintain the 80/20% ratio in social vs.. rest split in budgetMaintain the 80/20% ratio in social vs.. rest split in budget
PPP Requirements PPP Requirements (2)(2)
Feasibility (continue)Feasibility (continue)
– Risk transfer Risk transfer
• Identify, cost and allocate various risks to the role players Identify, cost and allocate various risks to the role players best equipped to mitigate and manage them best equipped to mitigate and manage them
Selection of Selection of Preferred BidderPreferred Bidder
Political ProcessPolitical Process
Pre-feasibility study : Dorsch Consult – 1997/98Pre-feasibility study : Dorsch Consult – 1997/98
Premier announces Gautrain : Opening of Legislature Premier announces Gautrain : Opening of Legislature – January 2000– January 2000
Appointment of Political Cabinet Committee to Appointment of Political Cabinet Committee to oversee the projectoversee the project
Overseas visit by Political Committee 2001Overseas visit by Political Committee 2001
PPP processPPP process
RFQ : Two pre-qualified bidders May 2002RFQ : Two pre-qualified bidders May 2002
RFPI : Discussions May – Sept. 2002RFPI : Discussions May – Sept. 2002
RFPII : Issued 29 Nov 2002RFPII : Issued 29 Nov 2002
Submitted 30 Sept 2003 Submitted 30 Sept 2003
RFPIII (BAFO) : Submitted 29 Jan 2005RFPIII (BAFO) : Submitted 29 Jan 2005
FBAFO : 26 March 2005FBAFO : 26 March 2005
Preferred Bidder : 2 July 2005 ( and Reserve Bidder )Preferred Bidder : 2 July 2005 ( and Reserve Bidder )
Financial close : December 2005 ?Financial close : December 2005 ?
Procurement ProcessProcurement ProcessProcurement ProcessProcurement Process
RFQ : 2 Pre-Qualified BiddersRFQ : 2 Pre-Qualified Bidders (May 2002) (May 2002)
Bombela ConsortiumBombela Consortium– Bombardier Bombardier
TransportationTransportation
– Bouygues Travaux Bouygues Travaux PublicsPublics
– Murray & RobertsMurray & Roberts
– RATP InternationalRATP International
– SPG groupSPG group
– Loliwe Rail ContractorsLoliwe Rail Contractors
– Loliwe Rail ExpressLoliwe Rail Express
– Standard BankStandard Bank
– RMBRMB
– ABSAABSA
Gauliwe ConsortiumGauliwe Consortium– CAFCAF
– DragadosDragados
– Grinaker – LTAGrinaker – LTA
– Metro de MadridMetro de Madrid
– CANACCANAC
– UfudoUfudo
– TirisanoTirisano
– NedbankNedbank
– InvestecInvestec
CONCESSIONAIRECONCESSIONAIRE
BOMBELABOMBELA
Bombela: Contractual EntitiesBombela: Contractual EntitiesBombela: Contractual EntitiesBombela: Contractual Entities
TURN KEYTURN KEY
CONTRACTORCONTRACTOROPERATOROPERATOR
CIVILCIVIL
CONTRACTORCONTRACTOR
E&ME&M
CONTRACTORCONTRACTOR
E&ME&M
MAINTAINERMAINTAINER
Bombardier:Bombardier: 25.0% 25.0%Bouygues: 25.0%Bouygues: 25.0%M&R:M&R: 25.0% 25.0%SPG : SPG : 25.0% 25.0% RATP: 51.0%RATP: 51.0%
M&R: 23.9%M&R: 23.9%SPG: 25.1%SPG: 25.1%
Bombela Rolling stockBombela Rolling stock
Financial LiabilitiesFinancial Liabilities
Gautrain Cost EstimateGautrain Cost Estimate
Initial estimate R 7,0 billion (Feb 2002)Initial estimate R 7,0 billion (Feb 2002)
Cost increases ( MEC Ignatius Jacobs 26 Oct 2005)Cost increases ( MEC Ignatius Jacobs 26 Oct 2005)
– EIA requirements (29 Sept 2003) – route alignment changes & EIA requirements (29 Sept 2003) – route alignment changes & mitigating measuresmitigating measures
– Net effect of higher ridership and the consequent increase in the Net effect of higher ridership and the consequent increase in the size of the system due to opening date moving from 2007 to 2010 size of the system due to opening date moving from 2007 to 2010 and the recent high increases in land costs impacting on the and the recent high increases in land costs impacting on the acquisition of land needed for the construction of the project acquisition of land needed for the construction of the project
– Reviewed risk values due to the fact that in a PPP project all risks Reviewed risk values due to the fact that in a PPP project all risks need to be priced and incorporated.need to be priced and incorporated.
– VAT on the construction elements that was originally not included in VAT on the construction elements that was originally not included in the 2002 costingthe 2002 costing
– Reviewed contingencies as a consequence of the above factorsReviewed contingencies as a consequence of the above factors
Gautrain Cost EstimateGautrain Cost Estimate
Cost increases ( MEC Ignatius Jacobs 26 Oct 2005) Cost increases ( MEC Ignatius Jacobs 26 Oct 2005) (continue)(continue)
– A few minor reasons that have contributed to the increased A few minor reasons that have contributed to the increased cost are additional tunnel lining due to geotechnical cost are additional tunnel lining due to geotechnical conditions, relocations of bulk services and reviewed conditions, relocations of bulk services and reviewed insurance premiumsinsurance premiums
Result of these cost increases : Feb 2002 estimate Result of these cost increases : Feb 2002 estimate increased to R12,0 billion ( a 71% cost increase) increased to R12,0 billion ( a 71% cost increase)
If this estimate is escalated to a Dec 2005 number If this estimate is escalated to a Dec 2005 number and expressed as a total exposure of government and expressed as a total exposure of government over the next 5 years (in nominal terms ) it is R 20,0 over the next 5 years (in nominal terms ) it is R 20,0 billion plus ( as stated by Min Manuel ) billion plus ( as stated by Min Manuel )
Affordability of GautrainAffordability of Gautrain
After receiving RFP II in Sept 2003 it became apparent After receiving RFP II in Sept 2003 it became apparent that the Province would have to borrow funds to stay that the Province would have to borrow funds to stay within the 80/20 splitwithin the 80/20 split
– Discussions with Min Manuel (principle agreement)Discussions with Min Manuel (principle agreement)
– Provincial borrowing powersProvincial borrowing powers
– Revised TA1 authorisationRevised TA1 authorisation
– Financial model of Provincial income and expenditure for Financial model of Provincial income and expenditure for next 20 yearsnext 20 years
– BAFO process to reduce cost and risk to ProvinceBAFO process to reduce cost and risk to Province
Affordability GapAffordability GapBidders Position
Provincial Affordability TAI Revised
EIA Impacts Risk Revision Affordability Revision
Best and Final Offer Process
Costing Challenges Specification Changes
Affordability Gap
Affordability of GautrainAffordability of Gautrain
FIFA 2010 Soccer World CupFIFA 2010 Soccer World Cup
– Gautrain formed an integral part of South Africa’s bid Gautrain formed an integral part of South Africa’s bid documentdocument
– Gautrain was reported on extensively by FIFA in its Gautrain was reported on extensively by FIFA in its evaluation and final recommendationevaluation and final recommendation
– Must form the backbone of the public transport system in Must form the backbone of the public transport system in Gauteng for the World CupGauteng for the World Cup
– Achieving this in time becomes an RSA undertakingAchieving this in time becomes an RSA undertaking
Affordability of GautrainAffordability of Gautrain
At the beginning of 2005, National Treasury (NT) had questions around the At the beginning of 2005, National Treasury (NT) had questions around the spending pressures on Social Services (over and above the 80/20 split) and the spending pressures on Social Services (over and above the 80/20 split) and the pressures Gautrain will put on future Provincial budgetspressures Gautrain will put on future Provincial budgets
– a national contribution for Gautrain is investigateda national contribution for Gautrain is investigated
– National Department of Transport sees Gautrain as a public transport National Department of Transport sees Gautrain as a public transport flagship project of national importanceflagship project of national importance
– NDoT submits a Cabinet memo to approve the principle of NDoT submits a Cabinet memo to approve the principle of
• National financial support for GautrainNational financial support for Gautrain
• Gautrain as a national flagship public transport projectGautrain as a national flagship public transport project
• Completion of Gautrain linked to country’s commitment for the FIFA 2010 Soccer Completion of Gautrain linked to country’s commitment for the FIFA 2010 Soccer World Cup World Cup
Affordability of GautrainAffordability of Gautrain
NDoT cabinet memo approved in principleNDoT cabinet memo approved in principle
Busy developing second memo to expand on the quantum of the Busy developing second memo to expand on the quantum of the national contribution towards the Gautrainnational contribution towards the Gautrain
Additional funds required to link existing public transport to the Additional funds required to link existing public transport to the Gautrain and ensure a holistic public transport system for the Gautrain and ensure a holistic public transport system for the provinceprovince
Task team appointed to develop a public transport integration Task team appointed to develop a public transport integration document document
NB: TAI (revised) & TAIIB authorisation received, conditional to NB: TAI (revised) & TAIIB authorisation received, conditional to the approval of the second Cabinet Memothe approval of the second Cabinet Memo
FundingFunding
The public sector funding of the Gautrain's capital costs over the The public sector funding of the Gautrain's capital costs over the five year development period will be sourced from three places: five year development period will be sourced from three places:
– The Gauteng provincial government's equitable share (i.e. the The Gauteng provincial government's equitable share (i.e. the provincial budget (MTEF)); provincial budget (MTEF));
– provincial borrowing from the National Treasury; and provincial borrowing from the National Treasury; and
– a conditional grant from National Treasury via the National a conditional grant from National Treasury via the National Department of Transport. Department of Transport.
The conditional grant via the Department of Transport's budget The conditional grant via the Department of Transport's budget makes up 50% of the public sector's capital costs of the project, makes up 50% of the public sector's capital costs of the project, with the provincial budget and provincial borrowing sums with the provincial budget and provincial borrowing sums making up the remaining 50%.making up the remaining 50%.
FundingFunding
It needs to be emphasised that the bid received from It needs to be emphasised that the bid received from the Preferred Bidder is a fixed price lump sum the Preferred Bidder is a fixed price lump sum contract which means that after financial close has contract which means that after financial close has been reached (Dec 2005) there will be no future cost been reached (Dec 2005) there will be no future cost increases. increases.
The final cost will be within the affordability limit The final cost will be within the affordability limit approved by National Treasury in TA1 in June 2005approved by National Treasury in TA1 in June 2005
Debt & Equity
Pro
vin
cia
l
Co
ntr
ibu
tio
n
(G
ran
t)Operating Expenses
Debt Service & Profit
Develo
pm
ent
Period C
osts Establishing the size of the Provincial Grant
Debt & Equity
Pro
vin
cia
l
Co
ntr
ibu
tio
n
(G
ran
t)
Bidders Patronage Revenue
Patronage Guarantee
Develo
pm
ent
Period C
osts Establishing the size of the Patronage Guarantee
Minimum Required Total Revenue
Operating Period Income Revenue
Operating Period Expenditure
Debt & Equity
Pro
vin
cial
Co
ntr
ibu
tio
n (
Gra
nt)
Bidders Patronage Risk
Patronage Guarantee (contingent liability)
Dev
elop
men
t P
erio
d C
osts
Risk Profile of the Patronage Guarantee
Minimum Required Total Revenue
Patronage Guarantee (expected)
Provincial Patronage/Revenue Forecast
Concessionaires Demand Forecast
Gautrain : A Catalyst for Gautrain : A Catalyst for public Transport public Transport in South Africain South Africa
Gautrain in PLTFGautrain in PLTF
Although Gautrain has been incorporated in a number of Although Gautrain has been incorporated in a number of places, and impacts on a number of PLTF strategies (such places, and impacts on a number of PLTF strategies (such as future rail network, promotion of public transport, modal as future rail network, promotion of public transport, modal integration, spatial densification, etc.) it is also highlighted integration, spatial densification, etc.) it is also highlighted separately in the PLTF.separately in the PLTF.
Section 8.6 of the PLTF (2003-2008) includes:Section 8.6 of the PLTF (2003-2008) includes:
– BackgroundBackground
– ObjectivesObjectives
– Strategy (including consultation), andStrategy (including consultation), and
– Project Procurement Process Project Procurement Process
Gautrain Rapid Rail Aligned WithGautrain Rapid Rail Aligned With
Gauteng Spatial Development FrameworkGauteng Spatial Development Framework
Gauteng Provincial Land Transport FrameworkGauteng Provincial Land Transport Framework
Gauteng Transport Strategy and Initiatives In PerspectiveGauteng Transport Strategy and Initiatives In Perspective
Gauteng Integrated Land-use and Transport FrameworkGauteng Integrated Land-use and Transport Framework
Gauteng Strategic Public Transport NetworkGauteng Strategic Public Transport Network
Gautrain Rapid Rail Aligned WithGautrain Rapid Rail Aligned With
Integrated Transport Plans:Integrated Transport Plans:
– Ekurhuleni, Johannesburg, TshwaneEkurhuleni, Johannesburg, Tshwane
Integrated Development PlansIntegrated Development Plans
– Ekurhuleni, Johannesburg, TshwaneEkurhuleni, Johannesburg, Tshwane
Airports Company PlanningAirports Company Planning
SARCC Rail Network PlanningSARCC Rail Network Planning
FIFA 2010 Soccer World Cup BidFIFA 2010 Soccer World Cup Bid
Public Transport Integration Public Transport Integration Task TeamTask Team
Joint Task team appointed from all three spheres of Joint Task team appointed from all three spheres of Government to :Government to :
– consider opportunities that the Gautrain Project provides to consider opportunities that the Gautrain Project provides to maximise the achievement of the objectives of public maximise the achievement of the objectives of public transport in particular and transport transformation more transport in particular and transport transformation more generally through either ‘strategic’ or ‘operational generally through either ‘strategic’ or ‘operational integration’.integration’.
Public Transport Integration Public Transport Integration Task TeamTask Team
““Strategic Integration” refers to: Strategic Integration” refers to:
– ways to integrate Gautrain with other strategic land use and ways to integrate Gautrain with other strategic land use and transport interventions, in a manner that is consistent with transport interventions, in a manner that is consistent with the policy and planning processesthe policy and planning processes
““Operational Integration” refers to:Operational Integration” refers to:
– specific opportunities to improve the business prospects of specific opportunities to improve the business prospects of both Gautrain and other public transport systems in Gauteng both Gautrain and other public transport systems in Gauteng through operational cooperation.through operational cooperation.
Report completed, final editing and input document Report completed, final editing and input document for second Cabinet Memofor second Cabinet Memo
The Gautrain will promoteThe Gautrain will promotePublic TransportPublic Transport
SMME & BBBEE DevelopmentSMME & BBBEE DevelopmentTourismTourism
Business developmentBusiness development
The project stimulatesThe project stimulatesEconomic growthEconomic growth
Investment Investment New developmentNew development
Job creationJob creation
Design toDesign to Restructure urban areasRestructure urban areas Reduce travel distances, Reduce travel distances,
time and costtime and cost Improve city sustainability Improve city sustainability
More than Just Another Transport ProjectMore than Just Another Transport Project
Way ForwardWay Forward
TimelinesTimelines
RFQ-Process
Investors Conference
Announce pre-qualified bidders
Announce Preferred &
Reserve Bidder
Construction Commence
Prepare RFP documents
Sep 2001
End April2002
21 Oct2002
29 Sep2003
30 Sep 2003
Mid2005
Late 2005
EIA - Process
FinancialClose
EIA Report & Draft EMP ROD
InfrastructureAct
requirements
Negotiate with Bidder(s)
RFPPhase II
RFPPhase I
29 Nov2002
Proclamation and Land acquisition
Final EMPROD Appeals
Detail Design
RFPPhase III(BAFO)
Apr 2004
Financial ClosureFinancial Closure
Negotiations with successful bidder commenced after Negotiations with successful bidder commenced after the announcement on 2 Jul 2005the announcement on 2 Jul 2005
The essence of this process is to finalise the The essence of this process is to finalise the concession agreementconcession agreement
Negotiations with lenders will also take place inNegotiations with lenders will also take place inthis phasethis phase
Enabling WorksEnabling Works
In this phase, that will run concurrent with financial In this phase, that will run concurrent with financial closure, the land will be prepared for constructionclosure, the land will be prepared for construction
Moving of bulk services such as Telkom, Eskom, Moving of bulk services such as Telkom, Eskom, Rand Water and gas linesRand Water and gas lines
This phase is necessary to win time and to ensure This phase is necessary to win time and to ensure that the system will be fully operational by 2010that the system will be fully operational by 2010
This is also the phase in which the preferred bidder This is also the phase in which the preferred bidder will finalise preliminary and final designwill finalise preliminary and final design
Commencement of Construction Commencement of Construction
Construction will commence in early 2006Construction will commence in early 2006
Construction period: 54 monthsConstruction period: 54 months
JIA – Sandton Link will be operational earlierJIA – Sandton Link will be operational earlier
Full system operational in April / May 2010Full system operational in April / May 2010
Thank YouThank You
www.gautrain.co.zawww.gautrain.co.za
Rationale Rationale
CongestionCongestion
GovernmentGovernment PolicyPolicy
MobilityMobility
PrivatePrivate Transport TransportPublic TransportPublic Transport
BusBus TaxiTaxi RailRail
MetrorailMetrorail GautrainGautrain
Road capacity:Road capacity:GovernmentGovernment
Road capacity:Road capacity:TollToll
• HOV lanes HOV lanes • Extra Extra capacitycapacity
RailRail
MetrorailMetrorail GautrainGautrain
• Wil need :Wil need :• Major extensions to Major extensions to
networknetwork• New rolling stockNew rolling stock• Signalling upgradeSignalling upgrade
• Concessioning (Concessioning (operationsoperations))• LimitedLimited PPP possibility PPP possibility
• Purpose Purpose mademade to to address congestion in address congestion in the Tswhane – JHB the Tswhane – JHB corridorcorridor
• Ideal for PPP aproachIdeal for PPP aproach