Gautrain not ready for World Cup

Posted On Wednesday, 11 November 2009 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Gauteng will not pay an extra R1.3 billion to have the first phase of the Gautrain completed before the 2010 World Cup.

2010The section between the OR Tambo airport and Sandton was due for completion by June 27, according to the agreement between the Bombela Consortium and the province.

The soccer tournament kicks off on June 11, 2010.

The chief executive of the Bombela Concession Company, Jerome Govender, confirmed the deadline for the first phase would now be October.

Provincial premier Nomvula Mokonyane was quoted as saying the province had not approached the Treasury for further funds as it had already asked for more money for roads, housing and social development.

The report quoted Deputy Transport minister Jeremy Cronin as saying the national government supported Mokonyane’s decision.

“It would be unwise to pay so much to gain a couple of weeks while government’s coffers are under pressure.”

He added that information in his possession showed Bombela would have been able to meet the earlier date, but “had negotiated very aggressively”.

“It’s a pity that they (Bombela) will not use the World Cup soccer tournament to show off the project; money means more to them than such considerations.”

Cronin said the fact that an outside company French construction group Bouygues was one of the main shareholders in Bombela, may have had something to do with their approach.

The French group has a 17% stake in the Bombela Concession Company, which has to deliver and operate the rail system for 20 years.

SA construction group Murray&Roberts has a 25% stake.

Both have a 45% interest in Bombela Civils Joint Venture, which is building the infrastructure for the R26 billion project.

Govender said having the service available before the World Cup was a complex issue; money was not the only consideration, Fin24 reported.


Last modified on Thursday, 31 October 2013 08:48

Most Popular

Property sales and development in Cape Town’s East City precinct healthy despite pandemic

Sep 01, 2020
Just nine months after launching to market, 63% of The Harri, a new 48-unit apartment…

Realising the potential of embattled Cape York

Sep 01, 2020
Previously owned by the Bank of Mozambique and abandoned, Cape York had been hijacked and…

Business parks thrive as industrial tenants seek value

Sep 10, 2020
Rael Levitt
Business parks are coming into their own as a viable asset class in commercial real…

Growthpoint grants R436m rental relief to struggling tenants, impacting its full-year distributable income which was down 14.8%

Sep 10, 2020
Norbert Sasse Growthpoint Properties Group CEO
Growthpoint Properties Limited (JSE: GRT) delivered 5.4% growth in revenue and R5.5bn in…

Creativity on the march across retail landscape

Sep 14, 2020
Belinda Clur MD
Creativity is on the march across the retail landscape as sector players get to grips…

Please publish modules in offcanvas position.