Gautrain to get extra R1bn from province

Posted On Friday, 29 February 2008 02:00 Published by eProp Commercial Property News
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The Gautrain project will get an extra R1bn injection from the provincial government’s reserves to reduce its borrowing from R5,2bn to R4,2bn.

Gautrain ProjectThe Gautrain project will get an extra R1 billion injection from the provincial government’s reserves to reduce its borrowing from R5,2 billion to R4,2 billion.

Over the medium term, the Gautrain project will get R11,6 billion from the Gauteng government.

Tabling the provincial budget in the Gauteng legislature yesterday, finance and economic affairs MEC Paul Mashatile said the Gautrain project had succeeded in accelerating economic growth and job creation.

“Through this project, we’ve been able to grow the labour absorption capacity of the prov incial economy,” said Mashatile.

“This has in turn translated economic growth into the creation of new employment and has contributed to skills transfer, reduced inequality and poverty.”

More than R648 milion had been spent by the project on procurement and subcontracting to more than 180 existing broad-based black economic empowerment (BBBEE) companies, and R170m on new 60 BBBEE companies.

More than R149 million had been spent on small, medium and micro enterprises. Material worth R313 million was purchased locally.

Mashatile said the Gauteng economy grew 5,3% in 2005 and 6% in 2006.

“After recording impressive growth in 2006, the provincial economy is expected to have slowed in 2007 in response to the tighter monetary policy environment,” he said.

The provincial government had allocated R31,5 billion over the next three years to fund infrastructure projects, which could be catalysts to economic growth and job creation.

“These projects include the development of new infrastructure such as roads, clinics, housing and schools, as well as the maintenance and rehabilitation of existing infrastructure.”

The public transport, roads and works department received more than R7 billion to improve public transport, construct new roads and maintain existing ones.

Manufacturing, competitive sports, creative industries, tourism, ICT infrastructure and services, and the roll out of the Gauteng 2010 World Cup strategy would be prioritised.

Mashatile said Ford’s R1,5 billion investment in SA was proof that investors had confidence in the South African economy.

The Ford plant in Silverton, Tshwane, would be expanded as part of the investment. An economic impact study by KPMG indicated that this investment had the potential to add R79 billion to the provincial economy and create 680000 new jobs by 2025.

Mashatile announced that BMW was planning to produce its new 3-Series model for export to Australia, Malaysia, Singapore and Japan at its plant in Rosslyn from 2012 to 2020.

He said the Gauteng Shared Service Centre would receive R1,15 billion to spend on various programmes and invest in making doing business in the province easier.

The Gauteng treasury would receive R185,5 million.


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