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The Cost Factor
Bombela Consortium has been chosen to
build the high-speed train over the next four-and-a-half years, in a
public-private partnership. According to Barbara Jansen, the Gautrain
spokesperson, the construction is expected to start in
May.
“We hope to sign a
concession agreement in the middle of May and construction will start
soon after that,” she said. According to the
conditions and regulations of the procurement phase which the project is
currently in, Bombela is not allowed to make any disclosure with
regards to the cost of the project.
Click here to listen to Barbara Jansen
The cost of the
project was however determined by the national treasury in July 2005 and
it is estimated to cost R20 billion. Jansen says the project cannot
exceed this amount.
Trevor Manuel, the finance minister, indicated in his
budget speech (2006) that R7.1 billion had been allocated for the
construction of the train. Manuel reported in the Budget review that the
costs would be shared "between the province (of Gauteng) and the
national government".
This is one of the biggest single items in the
R372-billion infrastructure spending allocation over the next three
years - part of government's Accelerated and Shared Growth Initiative (Asgisa).
The Gautrain rapid rail link project received a big central government
boost in February with R14 billion allocated to the project over the medium term
expenditure framework period.
Source: Johannesburg News Agency
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