P Mashatile and I Jacobs on Monorail proposal

1 June 2007

The proposed Monorail project is a private sector initiative to invest in
public transport infrastructure. It was considered by Gauteng Economic
Development Agency (GEDA) as it falls in line with the approach of the Gauteng
Provincial Government, with regard to growing the economy, creating jobs and
improving infrastructure. In this regard, the Gauteng Transport Infrastructure
Act was invoked.

The monorail is a positive development into attracting inward investment to
transport infrastructure while contributing to the development of a public
transport system that is efficient, safe, affordable and reliable. The success
of the Gauteng economy, job creation and the wellbeing of our people rely on
growing the economy, including foreign direct investment in public transport
infrastructure.

The Memorandum of Understanding (MoU) signed between the Gauteng Department
of Public Transport, Roads and Works, GEDA and Newcyc, on Wednesday, 16 May
2007, after a feasibility study and announced publicly, is a document that
allows the investor to do the following:

1. consult with all affected parties in the pilot route in 90 days
2. conduct an Environment Impact Study
3. resolve maters of land acquisitions and land use in 60 days
4. consult various groupings to establish the South African part of Broad Based
Black Economic Empowerment (BBBEE) component of the consortium.

The Gauteng Government, in addition, would have taken its work further by
setting p a properly commissioned and procured Turnkey Project for the Monorail
system, to ensure that government and in particular, the public gets value for
money and that we act in the best interest of the public. Further to the above,
and following the public announcement of the monorail by the provincial
government of Gauteng and the subsequent statement by the Minister, a meeting
was held, on Friday, 25 May 2007, between Minister of Transport, Mr Jeff
Radebe, Gauteng MECs Paul Mashatile and Ignatius Jacobs, the Executive Mayor of
the City of Johannesburg, Councillor Amos Masondo and the relevant Member of
the Mayoral Committee, Councillor Rehana Mosajee and it resolved on the
following:

1. Noted the Minister's position that the monorail proposal in its current
form cannot be supported but, that, in principle Government is not opposed to
the concept of monorail.
2. The provincial government accepted that consultation was inadequate.
3. The province would need to go back and deepen consultation with all
stakeholders.
4. The meeting expressed appreciation for the debate and public consciousness
of public transport issues.
5. That the proposal would be put on hold until such time that the necessary
process, including consultation, has been undertaken.

In addition to the above, we would like to state that the Premier was aware
of the project, but was not involved in the details or consultations on the
matter.
The provincial government remains committed to the promotion of co-operative
governance, working in close partnership with national and provincial
government, in building an effective transport infrastructure to provide safe,
affordable, accessible and reliable public transport services to the people of
the province as well as to contribute to the success of initiatives such as the
2010 FIFA World Cup.

For more information contact:
Alfred Nhlapo
Cell: 083 376 8496
Tel: 011 355 7532

Issued by: Department of Public Transport, Roads and Works, Gauteng
Provincial Government
Source: Gauteng Provincial Government (http: www.gautengonline.gov.za)
1 June 2007