Concern at Go!Durban price tag

An artist's impression of a bus shelter on the new Integrated Rapid Public Transport Network that is planned for the Durban.

An artist's impression of a bus shelter on the new Integrated Rapid Public Transport Network that is planned for the Durban.

Published Nov 26, 2014

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Durban - The price tag for the Go!Durban transport network could swell beyond the initial estimate of R20 billion.

The eThekwini Municipality has also warned that the longer it took to implement, the more expensive the project would be.

The project would require “some re-prioritisation” in the city’s operating budget, eThekwini Municipality spokeswoman, Tozi Mthethwa, said.

The eThekwini Transport Authority (ETA) has said that extensive modelling that included technical, financial, and operational readiness was being undertaken as the city steamed ahead with the project, which is hoped would link various communities.

The public transport network will stretch as far as Hammarsdale to the west, Isipingo to the south and King Shaka International Airport and oThongathi to the north.

It aims to integrate bus, rail and taxi transportation and offer reliable and cheap commuter transport.

“What the final cost of delivering the project will be, will depend on a number of factors, including the length of time over which the project is delivered, escalation, and the strength of the rand,” Mthethwa said.

She was responding to concerns raised by the city’s internal audit committee over the financial implications of the Go!Durban, or Integrated Rapid Public Transport Network (IRPTN), which aims to connect 600 000 commuters across the city to nine public transport corridors by 2020.

It is one of the largest projects undertaken by the municipality. But its own audit committee recently raised the alarm over the costs and requested the financial implications of the budget.

In its report to council the audit committee said: “Although the committee has not yet had sight of the detailed budget working in respect of the IRPTN, it is concerned that the magnitude of the project could place intolerable strains upon the city’s finances.”

Mthethwa said they were aware of concerns raised by the audit committee and great care had been taken by the ETA to put proper plans in place for its implementation.

She said funding for the project would come from a number of sources.

“The infrastructure, electronic equipment and information and communications technology are funded primarily through the Public Transport Infrastructure Grant (PTIG) from national government.

“Where other municipal infrastructure has to be upgraded or maintained at the same time as the delivery of the IRPTN, the capital budget of the city is utilised,” Mthethwa said.

“Where the IRPTN is integrated with private development schemes, contributions from the private sector are also crowded in. The cost of compensation to be paid to public transport operators will be funded from another national grant, the Public Transport Network Operations Grant (PTNOG).”

Mthethwa said the operational cost of running the service would be funded primarily from passenger fare revenue, merchandising and advertising revenue, the PTNOG, “and if necessary”, from the city’s operating budget.

But opposition parties are concerned, saying they fear the city is ramming through the project with no concrete plans for funding and little or no consultation with communities.

“The only people it seems the city has consulted are the taxi operators,” MF caucus leader, Patrick Pillay, said.

“There is a huge amount of money going to be spent, money which will be co-funded by the ratepayer and they have not been consulted. We don’t know how much it will really cost and there is evidence it may increase drastically and that for us is a concern.”

DA eThekwini caucus leader Zwakele Mncwango agreed. “It seems like officials just thumb-suck these figures. How did they come to that figure of R20bn? It seems that that figure was just pulled from somewhere,” he said.

Daily News

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