Gautrain: Moving communities

Through the largest Public-Private Partnership South Africa has yet seen, between the Gauteng Provincial Government and the Bombela Concession Company, the Gautrain Project is already positively changing the hearts and minds of South Africans – from the creation and sustaining of almost 93 000 direct, indirect and induced jobs during the development period to the less direct benefits of enhanced infrastructure and community upliftment for economic growth.

Socio-Economic Development, essential to South Africa’s stability and economic growth, has never before been so firmly on track as it is now with the Gautrain Project. Not only does the project include a number of explicit, measurable socio-economic targets but it also includes an extensive role for the independent monitoring and evaluation of these, through an Independent Socio-Economic Monitor (ISEM) – a first for any major contract in this country and congruent with global ‘best practice’. The project has already made a significant contribution to Broad-Based Black Economic Empowerment, development of Small and Medium Enterprises, skills development, capacity building and job creation since commencement in September 2006.

This modern train will offer international standards of public transport with high levels of safety, reliability, predictability and comfort. It offers a cost-effective, efficient, environmentally friendly and safe solution to some of the country’s worst current transport problems.

But the project is about much more than building a train and directly supports many of Government’s more fundamental objectives. It is aimed primarily at accelerating sustained economic growth (including through infrastructure delivery) and generating employment, while also building a new culture of public transport usage. The Gauteng Province is using this project to, inter alia, empower historically disadvantaged individuals and therefore to achieving extensive Broad-Based Black Economic Empowerment and other Socio-Economic Development (SED) gains.

The Project has clearly defined and measurable targets within each of the above elements and, Gauteng Provincial Government together with Bombela, has appointed an Independent Socio-Economic Monitor (ISEM) to ensure that this is so.

In particular, the SED obligations that the Project will focus on include :

• Black Economic Empowerment, including equity participation, procurement, sub-contracting and establishment of new Black Empowerment entities
• Promotion and development of small and medium enterprises, through procurement and sub-contracting
• A Social Investment Programme for the sustainable development of affected underprivileged communities
• Maximisation of local content, including employment and procurement of South African material and equipment
• Employment Equity, addressing management participation, employment, and Human Resource development

A critical measure of the success of the project will be the achievement of these explicit benefits.

The ISEM independently verifies and monitors delivery by the Project with regard to the above SED obligations and requirements, undertaking the following tasks:

• Monitoring of the SED programmes
• Reviewing the relevant processes, procedures and systems
• Verifying the SED achievements
• Reporting monthly findings with regard to the above
• Undertaking advisory tasks, if required

It is expected that a number of SED ‘best practices’ will emerge from the Gautrain Project that will be used for similar monitoring exercises on future infrastructure projects around the country. Strategically, this makes the role, approach and outcomes of the ISEM that much more important and prominent.

The Seriti Consortium (KPMG, Utho Capital and GCCL² ) was contracted as the ISEM for an assignment extending over 52 months and covering the design, construction and commissioning of the Gautrain Project. Tshidi Mokgabudi (Executive Director and Head of Infrastructure, Government & Healthcare for KPMG) is the ISEM Director and is ultimately accountable in this role, leading a team of highly qualified, enthusiastic and committed professionals.

There are high expectations of the Gautrain project that go substantially beyond moving people more efficiently between Johannesburg, Tshwane and OR Tambo International Airport from 2010 onwards. Moving entire communities to a brighter tomorrow with the hope of more than they have today is a vision of the project that is already fast becoming a reality. Knowing that the project is achieving this is of interest to us all and an imperative for the Province and Government.

“The work of the ISEM has already begun, with positive outcomes and some early gains. The investment in Gautrain is substantial. The importance and relevance of knowing that this is also positively shaping and transforming our communities adds significantly to the value. The ISEM’s role is to reasonably ensure that this is achieved.” said Tshidi Mokgabudi, the ISEM Director.