http://www.businessday.co.za/Articles/C ... x?id=79576
Gautrain agency wants to meet 2010 deadline
Artwell Dlamini
Published: 2009/08/26 06:23:29 AM
THE Gautrain Management Agency, which oversees the building of the rapid rail project, said yesterday it sought to have the first phase ready a month before the original scheduled date so it would be in time for the Soccer World Cup next year.
Jack van der Merwe, CEO of the agency, said the parties signed the contract in September 2006, before the date of the World Cup was known. Van der Merwe said the agency was negotiating with the Bombela Concession Company, which is building the Gautrain, to determine the costs of accelerating construction of the R25bn project.
This acceleration puts pressure on the principal players — the agency, Bombela and the government — to get the key phase of the project completed on time at a time when costs are escalating.
Van der Merwe said Bombela would make a call on what it would cost to accelerate the project, saying that the agency expected the response in the next two months. It was not clear where the funds to cover the cost of this acceleration would come from.
Commenting after briefing Parliament’s portfolio committee on transport yesterday, Van der Merwe said sources of funding included the Gauteng provincial government, the national government and loans from the private sector. He said the agency wanted phase one of the project finished by May 27 — before the World Cup started, instead of the agreed date of June 27.
This first phase links OR Tambo International Airport and Sandton and is particularly important for Johannesburg, where the opening ceremony, the first game and final game of the World Cup — which runs from June 11 to July 11 — will be held.
Van der Merwe told the committee that foreign exchange and inflation could make the project more expensive . The cost shot up by R300m because of a spike in inflation. In terms of the escalation commitment, the provincial government had to pitch in to cover the shortfall. On the currency risk, Van der Merwe said the project had put in place protection against foreign exchange volatility. The Gautrain project carried 25% exposure to foreign exchange.
The second phase of the Gautrain project, which connects Sandton to Johannesburg Park Station and Midrand to Hatfield in Tshwane, is scheduled to be completed in 2011.
