http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 20, 2008

Gautrain agency dismisses claims that project's costs surged to R35bn

Back
Engineering|Components|Gautrain|Industrial|PROJECT|Project Management|Projects|Resources|Safety|System|Gautrain|Energy|Manufacturing|Service|Steel|Gautrain|Gautrain|Infrastructure|Rail
Engineering|Components|Gautrain|Industrial|PROJECT|Project Management|Projects|Resources|Safety|System|Gautrain|Energy|Manufacturing|Service|Steel|Gautrain|Gautrain|Infrastructure|Rail
engineering|components|gautrain-company|industrial|project|project-management|projects|resources|safety|system|gautrain-facility|energy|manufacturing|service|steel|gautrain-organization|gautrain|infrastructure|rail
© Reuse this



The Gautrain management agency, on Thursday issued a response to issues raised by African National Congress MP and South African Communist Party deputy general secretary Jeremy Cronin in Parliament on Tuesday, which indicated that the costs of the rapid-rail project were spiralling beyond the R20-billion mark, and heading towards R35-billion.

"The Gautrain Project would like to reiterate that the total cost of R25,2-billion for Gautrain's public private-partnership contract, as approved by National Treasury on 26 September 2006, is a fixed price, fixed scope and fixed period contract," Gautrain management agency CEO Jack van der Merwe said.

He added that the price could only increase if the consumer price index increased above the level, as predicted by the Reserve Bank - Government would then be responsible for the difference, or if a claim by the Gautrain Concession Company, Bombela, if they deemed the Gauteng Province to be in breech of the contract as per the Concession Agreement, or if the Gauteng Province decided to extend the route and/or build more stations - this would then be done through a variation order.

"None of the above has happened and at this point in time, the project is within budget and there are no indications that the cost will escalate to R35-billion as stated by Cronin," concluded van der Merwe.

In addition to questioning the costs of the project, news service Sapa quoted Cronin as having said that strategically ill-conceived infrastructure programmes could "crowd out and undermine other possibilities, among others, by drawing off scarce engineering, artisanal and project management skills from government departments, parastatals, and municipalities, and by driving up the prices of cement and steel and even threatening the availability of these key inputs," he said in parliament.

"Further, by making inappropriate technical choices, for example, in the case of the Gautrain, the train sets, the electrical components were all being largely imported, and because it was a stand-alone and once-off system, it meant there would be little medium-term and longer-term manufacturing spin-offs for future transport projects. How do we align our infrastructure investments with our industrial policy objectives?" Cronin questioned.

He suggested that for better alignment, "something like a council of state, which existed in a number of developing countries", should be considered and could be a "super-cabinet with a strategic planning mandate, and with key overarching portfolios like infrastructure, energy, human resources, social development, public safety, trade, industrial policy, foreign affairs, and the treasury."

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Two influential US senators, central to the so-called ‘chicken war’, have announced their intention to pursue amendments to the African Growth and Opportunity Act (Agoa) to secure greater access for US poultry into the SA market. “We believe passionately in Agoa’s...
The Independent Communications Authority of South Africa (Icasa) on Friday published the findings of a discussion document on South Africa’s television and radio local content environment. Icasa last year requested industry input as it reviewed and revamped...
Buying the catering unit of cash-strapped state airline South African Airways (SAA) could work for Bidvest Group, its chief executive said on Friday. SAA is considering selling some of its units including its inflight and airport lounge catering business, Air Chefs,...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96