No fast-track for Gautrain, claims report

JOHANNESBURG, SOUTH AFRICA - Nov 09 2009 12:08

Gauteng will not pay an extra R1,3-billion to have the first phase of the Gautrain completed before the 2010 World Cup, Finance 24 reported on Monday.

The section between the OR Tambo International airport and Sandton was due for completion by June 27, according to the agreement between the Bombela Consortium and the province.

The soccer tournament kicks off on June 11 2010.

Chief executive of the Bombela Concession Company, Jerome Govender, confirmed the deadline for the first phase would now be October.

Provincial Premier Nomvula Mokonyane was quoted as saying the province had not approached the Treasury for further funds as it had already asked for more money for roads, housing and social development.

The report quoted Deputy Transport Minister Jeremy Cronin as saying the national government supported Mokonyane's decision.

"It would be unwise to pay so much to gain a couple of weeks while government's coffers are under pressure."

He added that information in his possession showed Bombela would have been able to meet the earlier date, but "had negotiated very aggressively".

"It's a pity that they [Bombela] will not use the World Cup soccer tournament to show off the project; money means more to them than such considerations," he said.

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Cronin said the fact that an outside company -- French construction group Bouygues -- was one of the main shareholders in Bombela, may have had something to do with their approach.

The French group has a 17% stake in the Bombela Concession Company, which has to deliver and operate the rail system for 20 years.

South African construction group Murray&Roberts has a 25% stake.

Both have a 45% interest in Bombela Civils Joint Venture, which is building the infrastructure for the R26-billion project.

Govender said having the service available before the World Cup was a complex issue and money was not the only consideration, Fin24 reported. -- Sapa

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