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On the right track?

The Gautrain – a white elephant funded by taxpayers?

01 February 2012

Recent commentators and media coverage of the Gautrain suggest the average taxpayer is picking up the bill for this R25-billion project, regardless of whether or not the Gautrain is used or is a financial success. A different picture, however, one where the private investors could also stand to make a loss in this Public-Private Partnership (PPP), is painted by Dr Barbara Jensen of the Gautrain Management Agency (GMA), as well as Errol Braithwaite and Kelebogile Machaka of Bombela Concession Company (BCC) which, after an international tender process, were appointed by the Gauteng Provincial Government to design, build, operate, maintain and partially finance the Gautrain project.

Says Braithwaite: “A public-private partnership is a partnership in every respect. It [the government] puts in finances, approval processes and strategic outlines and private companies bring money in the form of investors, expertise, and operate and manage the project. Without these partnerships, nothing would be possible.”

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