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Mar 17, 2009

Gautrain project to create 148 000 jobs in next 20 years

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South Africa’s R25-billion Gautrain rapid-rail link project is expected to create about 148 000 direct, indirect and induced jobs in the next twenty years.

Of this, a total of 93 000 direct, indirect and induced employment will be created during the design, construction and commissioning phases of the project, and yearly about 2700 direct, indirect and induced jobs will be created during the maintenance and operation of the project.

This was indicated at the launch of the Gautrain broad-based socio-economic development (SED) strategy, in Johannesburg, on Tuesday.

The SED focuses on local skills development, capacity building and job creation. It is based on the broad-based SED objectives of government, with core elements of the strategy developed before the signing of the concession agreement with the Bombela Concession Company.

The Bombela Concession Company is the project’s private partner and has a 20-year concession agreement with the Gauteng Provincial Government (GPG) for Gautrain’s 54-month construction period and 15-year operating and maintenance phase.

To date, 11 700 direct jobs have been created, as well as 63 200 direct, indirect and induced jobs, while R36-million has been spent on human resource development.

MEC for local government Qedani Mahlangu said that the Gautrain project had presented the province with an opportunity to empower people and expand the economic activity of the province.

In light of this, she added that the project was not an impediment to international investors, but proved that such investors could comply with South African law, in terms of developing and maximising local skills.

“The countless opportunities created by the GPG through the Gautrain’s investment in the welfare of its people are even more significant given the current economic downturn.”

About R1210-million has been invested in the use of South Africa materials and plant and equipment, compared with a R980-million target, and 11 540 locals have been employed.

Mahlangu praised the efforts of the Bombela consortium for having made extensive efforts to ensure that it substantially exceeded its SED obligations in each quarter.

To date, Bomebela has procured about R1,89-billion for black economic empowerment (BEE), with about 260 BEE companies having benefited from the project to date. An amount of R780-million was subcontracted to new BEE companies, and about R590-million was subcontracted to small, medium-sized and microenterprises.

About 10 400 courses have been attended by unskilled and semi-skilled employees, and 1250 by management.

“Gautrain has always maintained that it is more than just a transport project. It is evident that Bombela has committed and embraced the SED objectives of the GPG. This is a clear indication of our commitment to grow the province’s economy by 8% in 2014,” said Mahlangu.

Edited by: Creamer Media Reporter
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