GOOD ACHIEVEMENTS ON SOCIO-ECONOMIC DELIVERABLES

While delivering an infrastructure project of world-class scale and standards, Gautrain remains committed to the sustainable socio-economic development of Gauteng and its people.

Gautrain’s socio-economic initiatives aim to address the economic inequities inherited from the previous regime. Fighting poverty through job creation, skills development and Black Economic Empowerment programmes have delivered positive results since construction started in September 2006.

The following was achieved by June 2008:

• Bombela has already created or sustained more than 7 400 local direct jobs and an estimated total of more than 40 000 direct, indirect and induced jobs to date.
• Bombela has increased its labour force to date and has significantly exceeded its obligations with regards to employment equity.  At the end of June 2008 Bombela and its sub-contractors have employed 9 501 people.  About 93% of these people, i.e. 8 865 are local people.  8 115 Historically Disadvantaged Individuals, 704 women, and 53 people with disabilities were employed.
• South African materials, plant and equipment to the value of more than R940 million; of which more than R670 million has been verified by the ISEM; have been purchased.
• More than R1 690 million; of which more than R1 010 million has been verified by the ISEM; was spent on procurement from, and sub-contracting to more than 210 BEEs.
• More than R670 million; of which more than R290 million has been verified by the ISEM; was spent on procurement from, and sub-contracting to more than 70 New BEEs.
• More than R500 million; of which more than R190 million has been verified by the ISEM; was spent on procurement from, and sub-contracting to more than 170 SMMEs.

Gautrain is uniquely structured as Public Private Partnership project between the Gauteng Provincial Government and Bombela Concession Company. As this partnership is implemented according to a Concession Agreement, Bombela committed to measurable socio-economic targets in order to ensure that the project does not mere pay lip service to its developmental responsibility.

The achievements of socio-economic targets are monitored on a monthly basis and verified by an Independent Socio-Economic Monitor (ISEM). The ISEM is also tasked with reviewing the relevant processes, procedures and systems, monitoring of programmes, reporting on monthly findings and, if required, the undertaking of advisory tasks. The function of this independent body is a first for any major contract in South Africa and is congruent with global best practice.

With regards to job creation, it is estimated that the Gautrain Project will create and/or retain about 93 000 direct, indirect and induced jobs during the design, construction and commissioning of the project and more than 2 700 jobs per annum during the operation and maintenance of the project.  Furthermore, it is estimated that an additional 40 000 jobs will be created due to developments in the vicinity of the stations.