Question NW2034 to the Minister of Transport

Reply:

1. Public Transport Network Grant

a) The Public Transport Network Grant (PTNG) is a Division of Revenue Act (DoRA) schedule 5B conditional Grant allocation;

To provide funding for accelerated construction and improvement of public and non-motorised transport infrastructure that form part of a municipal Integrated Public Transport Network (IPTN) and to support the planning, regulation, control, management and operations of fiscally and financially sustainable municipal public transport network services.

b) The PTNG allocations are subsequently appropriated to municipalities that submit business plans with associated expenditure estimates per Medium Term Expenditure Framework (MTEF) period, wherein the 1st year of the MTEF reflects an actual appropriation whilst the 2 outer years are indicative allocations.

The allocation is governed by the Public Transport Network Grant Framework that is published with the annual Division of Revenue Act.

c)Infrastructure allocations:

Items	2016/17	2017/18	2018/19	2019/20	2020/21
Infrastructure component: Ekurhuleni	R 450 m	R 581 m	R 478 m	R 413 m	R 289 m

d) Capital expenditure for each of the five phases.

See table below. The initial costing of the system was based on build first and operate later approach whereby all corridors will be developed with dedicated bus lanes, however this approach is being reviewed and a financially contained approach will be implemented for future phases.

The total costs to date on Phase 1 are R 2 2290 mil. Due to a scaling down to now operate first and built later strategy, the infrastructure expenditure has been reduced for the next few years and for future phases. The estimates for the future phases are high-level and more accurate estimates will be developed during the design stage of each phase.

The NDoT will continue to work with the City to reduce costs, ramp up operations faster and increase fare revenue while reducing operating deficits.

It must be noted that the City is still operating a starter pilot service since November 2017 and therefore it is operating sub optimally and should have scaled up to a fully fledged service by July 2019.

Phase	Phase 1	Phase 2	Phase 3	Phase 4	Phase 5		Total (R mill)
Corridor	2	1	3	5	4	7	6
Financial Year	2021/22	191								191
	2022/23	330								330
	2023/24	385								385
	2024/25	421								421
	2025/26	439								439
	2026/27	92	391							483
	2027/28		430							430
	2028/29		473							473
	2030/31		284	407						691
	2032/33		170	428	221					819
	2033/34			470	199					669
	2034/35			376	219					595
	2035/36			263	131	350				745
	2036/37				144	385	271			801
	2037/38					424	298			722
	2038/39					466	328			794
	2039/40					513	361			874
	2041/42						397	348		745
	2042/43							383		383
	2043/44							422		422
	2044/45							464		464

(2) What was the exact (a) operating costs, (b) fare income and (c) council funding for each specific cost including operational in the (i) 2016-17, (ii) 2017-18, (iii) 2018-19 and (iv) 2019-20 financial years?

Items	2016/17	2017/18	2018/19	2019/20	2020/21
Operations Cost	R0	R119,2m	R126,7m	R168,4m	R232,2m
Fare Income	R0	R0,33m	R4,7m	R8,1m	R8,5m
Council Funding	R0	R0	R0	R0	R0