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Gautrain may need money for 2010

May 14 2009 13:59 James Brent-Styan

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Johannesburg - The Gautrain project could be asking the government for additional funding by July.

But this would only happen if stage one can be completed in time for the 2010 World Cup Soccer tournament.

Gautrain spokesperson Barbara Jensen says by June or July it will be known whether the project's first stage - linking the OR Tambo Airport with Sandton - will be ready in time for the tournament.

Should it appear that stage one cannot be completed in time at the current tempo, it will be necessary to determine whether construction can be accelerated in any way to ensure timely completion.

"If the associated costs are not exorbitant, Gautrain could ask the government for further financial assistance to secure the project's completion."

Jensen comments that the Gautrain never formed part of the planning for the World Cup.

"The original contract allowed 45 months to project completion. That's three years and nine months. The contract was signed on September 28 2006. The target date according to the contact is therefore June 27 2010, 16 days after the commencement of the soccer tournament."

Jensen notes that the consortium managing the Gautrain project does, however, hope to complete the project in time for the tournament.

"A R150m incentive for the consortium has been built into the contract should the project be completed before the tournament starts."

Thierry Weil, soccer controlling body Fifa's marketing director, expects some 500 000 visitors to South Africa for the 2110 spectacle.

He considers transport a major challenge.

Jensen points out that the Gautrain consortium will have an emergency measure in place to help convey people between the airport and Sandton if the Gautrain has not been completed.

In that event, the Gautrain's fleet of some 125 buses will be put in service to transport the people.

The total Gautrain budget is currently running at R25.1bn-odd. The government is financing R21.9bn of this and the remainder is being provided by private players.

According to Jensen, no pressure is being exerted by either Fifa or the local organising committee to speed up the project.

Bloomberg reports that earlier this year one of the project's contractors, Murray & Roberts, declared that it would not be possible to complete Stage One in time.

Construction has been slightly slowed down because of power failures and the appearance of a sinkhole.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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