Another Billion Spent On The Gautrain

Gautrain Expansion Plans
March 15, 2017

Gautrain Management Agency

The Gautrain Management Agency (GMA) together with the Gauteng Treasury and Department of Roads and Transport has paid out R980 million to Bombardier, the Gautrain operating company in an out of court settlement.

This information was recently revealed to the Gauteng Portfolio Committee on Roads and Transport by Gauteng Roads and Transport MEC Ismail Vadi.

The settlement is in respect of all outstanding matters relating to phase one of the Gautrain project.

MEC Vadi stated that he felt that any expansion of the Gautrain would be better managed because of lessons learned during Gautrain phase one.

It is obvious that contracts were not up to scratch from government’s side which favoured Bombardier in these negotiations.

This pushes the direct cost of phase one well over the R30 billion mark and does not include the ongoing annual ridership guarantees which run well in excess of R1.5 billion presently, and will not reduce significantly over time, if ever.

The expansion of the Gautrain route could be beneficial to the province but it is essential that tight monitoring of costs and water-tight contracts protecting government and citizens are in place.

Media Enquiries:

Neil Campbell MPL

DA Gauteng Spokesperon for Roads and Transport

082 387 2540

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