/ 8 November 2005

Report: No agreement on Gautrain for World Cup

The Bombela Consortium is under no legal obligation to complete the Gautrain before the 2010 Soccer World Cup starts, Business Day reported on Tuesday.

It quoted local construction partner Murray and Roberts (M&R) as saying there is no agreement with the government stipulating the train be ready in time for the World Cup.

The only requirement is that the contract be completed within 54 months beginning January 1 next year, said Millard Arnold, executive director of and legal adviser to M&R.

”Our commitment, understanding, obligation to government has always been that we would complete the project in 54 months,” he said.

”We would obviously like to finish the project in time for the World Cup, but if there are any delays to the project that prevent construction beginning January 1 — like we cannot complete financial closure with government in December — it will impact on completion time.”

Gautrain project leader Jack van der Merwe said he is puzzled by M&R’s statement as the contract is still being negotiated.

”That is the whole purpose of financial closure, to draw up a contract which we are still doing,” said Van der Merwe.

”Obviously, there is a length to any construction contract.”

Business Day said he would not be drawn on whether the present commitment with the consortium stipulates the number of months instead of a completion date linked to the World Cup. — Sapa