The Gauteng Provincial Government (GPG) has awarded a R1-billion tender to Absa Group, to fund the Gautrain Rail Link Project, a public-private partnership between GPG and the Mbombela Concession Company.
This is a term loan for a seven-year period and the initial drawdown is expected to be done this year.
Gauteng Finance MEC, Mr Mandla Nkomfe, described the deal as a milestone, which signals a new form of public-private partnerships.
“I would like to express our sincere appreciation to Absa for agreeing to partner with the Provincial Government in this kind of transaction. I should hasten to say that this is the first time that this kind of a deal has ever been entered into by a provincial sphere of government,” he said.
The Gautrain Rapid Link Project is a groundbreaking transport initiative that has already seen the modern state-of-the-art rail connection linking Tshwane, Johannesburg, and the OR Tambo International Airport.
“The awarding of this tender reinforces the key role we play in the Public Sector environment and gives us an opportunity to strengthen our partnership with a key Provincial Government account,” said Mr Bobby Malabie, Chief Executive of Absa Business Bank.
“The resources that have been raised through Absa are within the budget of the GPG towards the construction of the Gautrain Rapid Link. The R1-billion loan amount will be used to convert the short-term facility that was made available to the province during the construction phase of the project. From inception, the project was conceptualised such that it was to be funded by both government and the private sector,” MEC Nkomfe explained.
Absa holds various key public sector accounts, which include the Ekurhuleni, Cape Town and Johannesburg Metros as well as KwaZulu-Natal, Eastern Cape and North West Provincial governments.
“We have a clear strategy to maintain our market share in the Public Sector by delivering propositions in close collaboration with our clients that enable them to simultaneously fulfill their service delivery mandate. Our intention is to grow our relationships with existing clients while acquiring new ones. The GPG tender aligns directly with our focus in this sector and we are delighted that it has been awarded to us,” concluded Mr Malabie.
Enquiries:
Patrick Wadula
Tel: (011) 350 5768
Cell: 082 904 0713
Email: Patrick.wadula@absa.co.za
John Sukazi
Cell: 0837724885
Email: John.sukazi@gauteng.gov.za
Province
