02 December 2020 - NW2669
Sithole, Mr KP to ask the Minister of Transport
In light of the fact that the Gautrain is a smart public transport mode maintaining a high level of operational efficiency, what (a) total amount of profit did the Gautrain make in the 2019-20 financial year, (b) were the operational and maintenance costs and (c) total amount will Phase 2 cost?
a) The Gautrain is a Public Private Partnership between the Gauteng Provincial Government and a private sector consortium by the name of the Bombela Concession Company. In terms of this contract, the Gauteng Provincial Government does not make a financial profit from the project. Instead the Provincial Government maximizes the social and economic returns from having a well-run and efficient public transport system linking key economic nodes in Gauteng.
b) The operating and maintenance costs for the financial year ending March 2020 were R1,333 billion. During this period the revenue received from fare paying passengers and other sources such as advertising income totaled R971 million. There was an estimated R32 million loss of revenue in the month of March 2020 due to the reduced number of passengers travelling because of the Covid-19 pandemic. The shortfall was covered by the Patronage Guarantee paid by the Province of Gauteng as part of its ongoing contractual commitments in terms of the PPP agreement.
c) At this stage, the feasibility study for Phase 2 of the Gautrain is with the National Treasury and the estimated project costs can only be finalized once the input of Treasury is received and incorporated in the financial model.