Shilowa (read by MEC Qedani Mahlangu) on the proposed monorail project
8 June 2007
Over the past two weeks there has been much public debate, speculation and
even acrimony about a private sector initiative to establish a monorail in
Gauteng. The project was announced by the MEC for Finance and Economic Affairs
and the MEC for Public Transport Roads and Works on 16 May 2007.
Let me say at the outset that public debate and discussions on matters
affecting the public is welcome and should always be encouraged. However, we
feel it is important to set the record straight from the provincial
government's point of view.
The Gauteng Executive Council on Wednesday, 6 June 2007 received a report on
and discussed the proposed monorail project and has reached certain conclusions
on the way forward, which I will elaborate on.
As we have indicated on a number of occasions in this house, our economic
growth strategy is a central pillar of our continued efforts to tackle poverty,
underdevelopment and joblessness in our province. In achieving this we have
prioritised a range of initiatives to stimulate investment in and growth and
job creation in key economic sectors. In line with our provincial Growth and
Development Strategy and the Accelerated and Shared Growth Initiative for South
Africa (Asgisa), we have paid particular attention to investing in strategic
economic infrastructure which has improved our economic performance and
stimulated further private sector investment. Public transport corridors in
particular can play an important role in stimulating development and investment
in underdeveloped areas.
It is against this backdrop that the proposed monorail project should be
viewed.
Allow me to provide you with some background. In November 2005 the MEC for
Public Transport, Roads and Works received a request from the national
Department of Transport to meet with a Malaysian investor who was interested in
public transport opportunities including monorail projects. The MEC duly met
with the investor and a process then ensued which included:
* the conducting of a feasibility study and a cost benefit analysis
* liaison with South Africa's trade representative in Malaysia
* further meetings with the financial backers of the project
* consultations with officials from the Department of Transport, the Executive
Mayor and members of the mayoral committee of the City of Johannesburg, the
Soweto Chamber of Commerce, South African Rail Commuters' Corporation and
others
* a study of the relevant legislative frameworks
* the signing of a Memorandum of Understanding with the company, Newcyc, in
terms of which the investor would consult with affected parties, conduct an
environmental impact study and consult regarding the establishment of a
Broad-Based Black Economic Empowerment (BBBEE) component of the consortium.
Given the size and nature of the project as a private sector investment, the
Gauteng Economic Development Agency was also brought on board and the two MECs
then held a media briefing to announce the progress regarding the
initiative.
Subsequently it became clear that the Minister of Transport and the City of
Johannesburg mayoral committee had not been fully consulted. The two MECs then
met with the Minister and the Mayor and reached agreements on the way
forward.
The Executive Council has accepted that the failure to consult with both the
Minister and the Mayoral Committee was an oversight and that there was no
malice intended in this regard. We are also in full agreement with the outcomes
of the meeting with the Minister and agreed that further work should be
undertaken to further develop the business case for the project. In addition,
in consultation with all the relevant stakeholders, we will further explore
options around the integration of monorail projects as part of the broader
public transport system and integrated transport plan in the Gauteng city
region.
As the Minister of Transport indicated in his address to the National
Council of Provinces on Wednesday 6 June 2007, "We all agreed that the proposed
monorail would be put on hold until such time that the necessary process
including consultation has been undertaken. We also agreed that the proposal
should be open, transparent and it must take into account approved and funded
transport plans aimed at enhancing the efficiency of the current rail, bus and
taxi operations within the public transport system. This means that the Gauteng
province will review the proposal and develop a sound business case. Thereafter
there will be broader consultation with national, provincial and local
government. The proposal will be subjected to the normal processes of
government and then submitted for my consideration, in due course."
In addition, I am pleased to announce that the Executive Council has agreed
that the Gautrain political committee should be tasked with addressing these
matters over the next few months. The political committee is chaired by the MEC
for Finance and Economic Affairs and also includes the MEC for Public Transport
Roads and Works, the MEC for Local Government, the Provincial Director General,
the Premier's legal adviser and the Head of Department (HOD) for the Provincial
Treasury.
We remain committed to redouble our efforts in working hand in hand with
national and local government and civil society stakeholders to building a
safe, reliable, affordable and efficient public transport system in Gauteng. I
am confident that together we can make this happen.
Issued by: Office of the Premier, Gauteng Provincial Government
8 June 2007
