36 th annual conference & exhibition birchwood conference centre, gauteng 3-5 march 2005

38
36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference Centre, Gauteng 3-5 MARCH 2005 Gautrain Rapid Rail Link By Jack van der Merwe – CEO: PPP Unit, Gauteng Department of Finance & Economic Affairs T INSTITUTE OF QUARRYING & ASPASA

Upload: kelton

Post on 15-Jan-2016

41 views

Category:

Documents


0 download

DESCRIPTION

INSTITUTE OF QUARRYING & ASPASA. Gautrain Rapid Rail Link By Jack van der Merwe – CEO: PPP Unit, Gauteng Department of Finance & Economic Affairs. T. 36 th ANNUAL CONFERENCE & EXHIBITION Birchwood Conference Centre, Gauteng 3-5 MARCH 2005. - PowerPoint PPT Presentation

TRANSCRIPT

  • 36th ANNUAL CONFERENCE & EXHIBITIONBirchwood Conference Centre, Gauteng3-5 MARCH 2005

    Gautrain Rapid Rail Link

    By

    Jack van der Merwe CEO: PPP Unit, Gauteng Department of Finance & Economic Affairs

    T INSTITUTE OF QUARRYING & ASPASA

  • Gautrain Rapid Rail Link

    Institute for Quarrying3 5 March 2005Jack van der Merwe (Pr. Eng)Project Leader: GautrainChief Executive: Public Private PartnershipsGauteng Provincial Government

  • Background

  • The Powerhouse of AfricaGauteng is:Less than 2% of Countrys surface areaHome to 70% of the SAs workforceAccounts for some 40% of GDP of South AfricaGenerates 9% of GDP of Africa Most developed infrastructure in Africa Most technologically advanced Province The population is expected to exceed 9 million by the end of 2004

  • Gauteng EconomicDevelopment StrategyExisting economic strengths :MiningHeavy IndustryFinancial & Banking sectorProposed strategy:Smart industries - Gauteng the smart Province Move toward high value-added manufacturing Enhancing the business services (Finance & Banking) sector and business tourism

  • Provincial Blue IQ Initiatives"Blue IQ is a multi-billion Rand initiative of the Gauteng Provincial Government to invest in economic infrastructure development in identified mega projects in tourism, smart industries and high value-added manufacturing to create a truly smart province."

  • Rationale

  • Traffic Flow on N1N1 at New Road 0n Tue.03/10/2000

  • Share of Gauteng inNational Vehicle Fleet

  • Gauteng Vehicles/km

  • Technical info

  • Gautrain Key Objectives (1)Economic growth, development and job creationAlleviate severe traffic congestion (traffic volumes in corridor growing at 7% p.a. for more than a decade)Must meet other goals of Government (SME promotion, Business tourism, Black Economic Empowerment, etc.)Show Governments commitment to the promotion of public transport (National Land Transport Transitional Act, Act 22 of 2000)Improve the image of public transport with this project and attract more car users to public transport

  • Gautrain Key Objectives (2)To promote business tourism by means of the link between JIA and SandtonTo contribute towards urban restructuring, shortening travel distances and improving city sustainabilityTo link to the Tshwane Ring Rail Project, linking Mamelodi, Atteridgeville and Soshanguve / MabopaneStimulate the renovation and upliftment of the Johannesburg and Tshwane CBDsLink the main economic nodes in Gauteng with JIAPart of holistic transport plan and network for Gauteng

  • RosebankSandtonMarlboroRhodesfieldJIAMidrandCenturionPretoriaHatfieldPreferred RouteAnchor StationsStationsAirportPark Station

  • Technical specsInternational standard gaugeMaximum speed: 160 180 km / hModern state of the art trainsThus totally different from existing SA systemDifferent trains for commuters and air passengersInitial demand 104 000 passengers trips per dayFrequency every 10 30 minutesMinimum operating hours 05h30 20h30Safety and security

  • Feeder and Distribution ServicesAccess to the Gautrain - one of the key success factorsInitially a large part of the market segment not within walking access of stationsProvide dedicated bus services:Door-to-door service and travel timeConvenience of transfersSame quality and Level of Service offered from point of access to front door at destination end of tripIntegration with existing and other new systemsAmple park and ride facilities

  • Concept

  • Interesting facts (1)104 000 passengers per day are estimated to travel on GautrainApproximately 78 new commuter rail coaches will be manufacturedApproximately 250 new bus coaches will be used3,6 million train kilometres and 674 million passenger kilometres will be travelled per year10,6 million bus kilometres will be travelled per yearThere will be a train at least every 10 minutes during the peak time at stations between Johannesburg and Pretoria.

  • Interesting facts (2)260 000 concrete sleepers will be manufactured for use in the track20 000 tons of steel will be required to manufacture the steel rails112 000 m of bridges and viaduct structures will be constructedMore than 9 000 new parking bays will be required65 road intersections in the vicinity of stations will be upgraded 48 000 jobs will be created during construction

  • PPP Process

  • Project ProcessFundamental PrinciplesMulti-billion Rand projectCannot be funded in total by GovernmentCan only be developed as a Public-Private PartnershipPPP project (BOT type project)Must have political buy-in & the private sector must show an appetite for the PPP projectMust comply with all legal requirements

  • RFQ Qualified BiddersBombela ConsortiumBombardier TransportationBouygues Travaux PublicsMurray & RobertsRATP International

    Gauliwe ConsortiumCAFDragadosGrinaker LTAMetro de MadridCANAC

  • BOT AdvantagesWhat each party brings to the BOT

  • BOT AdvantagesWhat each party get from a BOT

  • Implementation ProcessFour pillarsPolitical will & commitmentViable project (base case design)TechnicalFinancialLegal/InstitutionalFunding (for Infrastructure & Operations)Governments portionPrivate Sectors portionCommunity acceptance & Buy-inSocio-economic benefitsPower of expropriation

  • PPP RequirementsFeasibilityValue for money Public Sector Comparator (PSC) (What will it cost if Government does the work through normal procurement process; and including completion and integration risk and cost)AffordabilityTotal cost of project, expressed in Net Present Value (NPV)Yearly cost to the province (contingent liability)Maintain the 80/20% ratio in social vs.. rest split in budget

  • PPP Requirements (continue)Feasibility (continue)Risk transfer Identify, cost and allocate various risks to the role players best equipped to mitigate and manage them

  • PPP ComponentsTechnical contentFinancial proposalLegal mark-upSocio-economic Development

  • EconomicInformation

  • Modelled Single Journey FareCost less than car, more than existing bus / taxi / rail

  • What Will the Economic Impact Be?Number of jobs created / sustained: Construction: 57 000 Operating and Maintenance: 2 200 p.a. Urban economic activity: 40 000 p.a.Increase in Gauteng GGP : 0,7 - 1% Increased business sales: R 6 billion

  • Way forward

  • New PressuresAfter 2004 elections:Top priority is to focus on job creation & fighting povertyTiming of the completion of the project to coincide with the FIFA 2010 World CupPressure on approvals & authorisations

  • Summary of Tender ProcessRFQ-ProcessInvestors ConferenceAnnounce pre-qualified biddersAnnounce Preferred & Reserve BidderConstruction CommencePrepare RFP documentsSep 2001End April200221 Oct200229 Sep200330 Sep 2003Apr2005Oct 2005EIA - ProcessFinancial CloseEIA Report & Draft EMP RODInfrastructureActrequirementsNegotiate with Bidder(s)RFPPhase IIRFPPhase I29 Nov2002Proclamation and Land acquisitionFinal EMPROD AppealsDetail DesignRFPPhase III(BAFO)Apr 2004

  • Development and OperationDevelopment Period (54 mths)Operating Period (15 years)Contract Term (19.5 years)Construction & Commission:Sandton JIA Construction & Commission:Remainder of the SystemOperations & MaintenanceDec 08Dec 09EnablingWorks Oct 05Mrt 05

  • The Seven Stages of a PPP ProjectEnthusiasmPromises & ProgrammesDisillusionmentPanicHunt for the guiltyPunishment of the innocentReward for those who had nothing to do with it

  • Thank Youwww.gautrain.co.za