NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION NO 240
DATE REPLY SUBMITTED: THURSDAY, 31 MARCH 2011
DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 18 FEBRUARY 2011
(INTERNAL QUESTION PAPER: NO 2 â 2011)
Mr D C Smiles (DA) asked the Minister of Transport:
(1) Whether there are any plans to go proceed with the Moloto Corridor
Project; if not, why not; if so, (a) what is the current status of the
project, (b) what budget has been allocated to the project and (c)(i)
how much and (ii) on what has money been spent;
(2) whether a feasibility study on the project has been undertaken; if
not, why not; if so, (a) when and (b) what (i) were the findings and
(ii) is the breakdown of the cost of this study;
(3) whether there are any plans for a public-private partnership; if not,
why not; if so, (a) at what stage is the process currently and (b)
what the further relevant details? NW259E
REPLY:
The Minister of Transport:
1) (a)
Yes, there are plans to proceed with this project. The project is
being pursued as a Public-Private Partnership (PPP) initiative and has
been registered with the National Treasuryâs PPP Unit.
(b) Please see the response to (3) (b) below.
(c) (i)
The Department of Transport has not allocated funding towards this
project. In March 2008, the Mpumalanga Provincial Government
concluded a detailed feasibility study at a cost of around R10
million.
2) (a) and (b) (i)and (ii)
During 2004, the Mpumalanga Province undertook a pre-feasibility study
to determine the viability of constructing a rail link between
Mpumalanga Province and the City of Tshwane, in Gauteng Province,
along the main provincial route R573, commonly known as the Moloto
Corridor.
In 2008 a feasibility study by the Mpumalanga Province was concluded
with the main findings being as follows:
o The primary section of the Moloto Rail corridor, i.e. from
Siyabuswa to Tshwane, a distance of approximately 120 km, was
found to be highly feasible.
o The estimated cost was approximately R8.6 billion (2007 rand
rate).
During the 2007/08 and 2008/09 Medium Term Expenditure Framework
(MTEF) process, the Department of Transport (DoT) attempted to obtain
funding for this project, but was unsuccessful.
During the process of motivating for the 2010/11 MTEF, the Department
was provided with a formal letter from National Treasury, which was
responded to as part of the Departmentâs MTEF submission. In terms of
the Departmentâs allocation letter, it has been informed formally that
there would be no funding for this project.
(3) The March 2008 feasibility study identified three different
implementation formats, namely public-private partnership (PPP), turn-
key project and conventional project implementation. It was concluded
in the study that the conventional approach was the preferred format
through which the implementation process should be initiated.
a)
The Department of Transport (DoT) has since decided that the PPP
format is the most desirable option and has registered the project
with the PPP Unit at National Treasury.
b)
In February 2010, the Director-General: Transport formally registered
the project with the PPP at National Treasury and has appointed a
Project Officer from within the Department. A Terms of Reference for
the appointment of a Transaction Advisor has been concluded in
cooperation with the PPP Unit. This involves expanding the
feasibility study that was completed in March 2008.
Given the financial pressures of the 2010 World Cup, the DoT was not
in a position to reprioritise funding within its budget allocation for
the 2010/11 financial year. The Department has motivated funding for
the feasibility study for the 2011/12 MTEF going forward. The DoT
has, however, been informed that no funding was allocated for the
project. In order to secure funding for the project, the Department
will have to consider reprioritisation of projects within the
Departmentâs Strategic Plan.