City dedicated to a Financially prudent IRT system

The City of Cape Town is dedicated to implementing a quality public transport system, but needs to be financially prudent in the current constrained economic climate, said Executive Mayor, Alderman Dan Plato. The implementation of the Integrated Rapid Transit (IRT) project will be limited according to the currently proposed National Government funding framework.

At the Council meeting today (28 October), Executive Mayor Plato said the City was committed to implementing the IRT system, but that the implementation needed to match affordability with viability, and expenditure to implementation.

Plato also confirmed that Cape Town's transport requirements to FIFA as a World Cup host city as well as to the Stadium Operator would be met.

On the Mayor's recommendations a report was passed by Council which sought to match the implementation of the IRT system to the City's available funding.

This Council resolution means that the IRT project will only spend money that is made available to the City through the Division of Revenue Act by National Government.

The IRT infrastructure contracts already committed will be completed. All other contracts required to complete Phase 1A will only be initiated once funding is secured from National Government.

The resolution will also ensure that Cape Town provides the required transport services for the World Cup event:

• Inner city circulatory service
• Match day shuttle service
• Airport city shuttle service

To ensure this service is operational for the World Cup the City was given the go-ahead to purchase the necessary buses, which will cost approximately R101.5 million.

The City was also given permission to purchase the land for the bus depot at R18.5 million, and to continue the negotiations with the existing public transport industry to secure an operator for the World Cup event.

The City will also negotiate with the contractor currently working on the R27, to extend their contract to include the construction of the Bayside Station, which will cost an estimated R14 million.

The report also gives the City a mandate to negotiate with National Government to gain certainty about the existing DORA funding allocations, secure early payments of funding where possible, as well as accessing additional funding.

The projected estimated cost of the full phase 1a is R4, 2 billion with the estimated operating deficit increasing to R125 million per annum when the full Phase 1A is operational.

The implementation of the IRT project will be limited according to the currently proposed National Government funding of R2, 355 billion; should this National Government funding be reduced, the scope of the project will be limited to available funds.

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Issued by:
Communication Department
City of Cape Town