Name and Location
Gautrain rolling stock procurement programme, South Africa.

Client
Gautrain Management Agency (GMA).

Project Description
The Bombela Concession Company (BCC), the operator of the Gautrain rapid rail link, has launched a request for qualification (RFQ) for the acquisition of 12 new trains of four cars each for the Gautrain.

The contract includes the design, manufacture, supply and maintenance of the new rolling stock, depot extensions to accommodate the new trains, signalling upgrades, as well as the construction of pocket tracks on the 82 km system for maintenance equipment and the parking of broken-down trains.

The new trains will not have to come from the same family, but will have to operate successfully under similar conditions.

Value
The price tag on the trains, the depots and track expansions is expected to be about R2.5-billion to R3-billion, although the weak rand could push prices higher.

The Gauteng Provincial Government (GPG) will pay for the rolling stock and has secured a loan from the Development Bank of Southern Africa for the acquisition.

It is, however, amenable to alternative funding options as presented by the successful bidder.

Duration
The new rolling stock should enter operation in 2018.

Latest Developments
The RFQ was made available on January 11 and the closing date for the RFQ submissions is March 7, 2016.

Once the RFQ period closes, a number of companies will advance to the request for proposals phase, which will conclude by December.

The business case for the additional rolling stock is based on a self-funding mechanism, which will result in additional revenue raised as a result of increased capacity and existing sources of funding within the current concession agreement with BCC, used to repay the associated debt.

GPG has also engaged the Development Bank of Southern Africa (DBSA) as mandated lead arranger to provide loan capital for the new rolling stock procurement.

The DBSA has approved, in principle, a loan of R3.5-billion that will be channelled into the GMA to pay for the new rolling stock.

CEO Jack van der Merwe has stated that 48 new rail cars will be required to support growing passenger numbers over the next ten years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Enquiries regarding the RFQ should be directed to the BCC, email tenders@bombela.com.
GMA senior executive manager communication and marketing Dr Barbara Jensen, email barbaraj@gautrain.co.za.