Question NW1848 to the Minister of Transport
06 June 2022 - NW1848
Hunsinger, Mr CH to ask the Minister of Transport
Whether, with reference to the replies to questions 1030 on 14 November 2019 and 497 on 2 March 2021, the City of Ekurhuleni met the deadline of October 2019 to have 40 buses operating; if not, what is the position in this regard; if so, what are the relevant details; (2) whether he will furnish Mr C H H Hunsinger with copies of the relevant correspondence of any caution issued by his department; if not, why not; if so, on what date; (3) whether there were any further requests for rollovers of unspent grant funding to his department; if not, what is the position in this regard; if so, what was/were the relevant amount(s); (4) what are the full and relevant details provided to his department of the amounts, sources of funding and reasons that short-term leases were entered into when records indicate long-term funding by various institutions; (5) (a) what is the total number of buses that have been bought, (b) how were the transactions funded and (c) how did the Vehicle Operating Company, a separate legal entity from the KTVR that was not yet constituted, secure financing in its name for the buses?
Reply:
1. A total of 40 buses were procured and were operating by October 2019. These took a year for these operations to be fully phased in due to the Covid-related drop in passenger demand.
These 40 buses are all currently being used to operate three (3) services between Thembisa hospital and Isando Industrial area, Bartlett Industrial area and OR Tambo International Airport.
2. The Department has held at least 3 Bilateral meetings per year on project progress with the City of Ekurhuleni. The need to complete unfinished work, ramp-up services and increase revenue has been continuously raised.
The City team has committed to do their best to implement changes. The Department has indicated it will continue to monitor progress.
3. The City of Ekurhuleni has not requested any rollover of unspent funds from the allocated budget in the current financial year.
4. The City indicates that all 40 buses have been procured. Initial leases were an interim measure to secure vehicles for services prior to the KTVR operating company being able to secure financing.
The Public Transport Network Grant (PTNG) covers the cost of vehicles as a capital subsidy. This subsidy is either paid to the operating company, if it secures financing; or as a direct purchase by the City.
5. a. 40 buses have been bought to date.
b. The Vehicle Operating Company (VOC) and KTVR are the same entity, KTVR (the VOC) obtained approval for bus funding through Bidvest Bank. The City used PTNG funds to enable KTVR to settle the loan. The Grant allows for a capital subsidy for bus purchase.
c. KTVR is the Vehicle Operating Company. There is no separate legal entity