'No resolution' over Gautrain costs

File picture: Cara Viereckl

File picture: Cara Viereckl

Published Apr 21, 2011

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The Gauteng Management Agency has confirmed that it has reached no resolution with contractors regarding extra costs incurred while building the Gautrain, less than three months before construction of the multibillion-rand rapid rail project ends.

The agency is overseeing construction for the Gautrain on behalf of the Gauteng provincial government.

Murray & Roberts (MUR) and other partners of Bombela Concession Company have forked out additional money on the project, due to delays arising from land handover, high input cost inflation and tough geological conditions.

Bombela also includes RATP Development and Strategic Partners Group (SPG).

In its full-year financial results to June 2010, Murray & Roberts reported that it recognised a charge of 619 million rand following a thorough review of the estimated cost to completion of the infrastructure works for the Gautrain project, including the additional cost of delivering Phase One in time for the 2010 FIFA Soccer World Cup.

The construction group has vowed to try to recover the extra costs.

Barbara Jensen, spokesperson for the agency, told I-Net Bridge/BusinessLIVE that no resolution on the matter had been reached.

Jensen said the project was still within its original budget, noting that 25.2 billion rand would have been spent on completion of the Gautrain.

On the progress of construction, she said the Gautrain would be operational on the full system within less than three months.

“We are working hard to have the full system operational by the beginning of July,” Jensen said.

Bombela told I-Net Bridge/BusinessLIVE it was working towards completing the Gautrain project at the end of June.

The remaining sections of Sandton station required for the Phase Two operations were completed during March, the company said.

The Phase Two works were well advanced, with those between Rosebank Station and Pretoria Station, including all testing and commissioning activities, being substantially completed during March, it said.

Access was provided to Bombela to the full railway alignment, and trial running between Rosebank and Pretoria stations commenced on March 8.

Trial running along the final links to Park station and Hatfield station would follow.

The first phase included the airport train service between Sandton Station and OR Tambo International Airport, a commuter service between Sandton and Rhodesfield and an intermediate stop at Marlboro Station. - I-Net Bridge

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