SEPTEMBER ACHIEVEMENTS FOR GAUTRAIN’S SOCIO-ECONOMIC INITIATIVES

Over and above the design, construction, commission, operation and maintenance of the Gautrain Rapid Rail Link project, specific socio economic objectives were defined.  Skills development forms the backbone of the socio economic development (SED) strategy of the project.  It includes the equity participation of black persons and black women in the entities created for the project, participation of Black Empowerment Entities (BEEs) and Small, Medium and Micro Enterprises (SMMEs) in procurement and sub-contracting, enhancing local content, participation by Historically Disadvantaged Individuals (HDIs) and women in management, contribution to employment equity, and a human resource development strategy, which includes a women learnership and mentorship programme.

Gautrain is uniquely structured as Public Private Partnership project between the Gauteng Provincial Government and Bombela Concession Company (Pty) Ltd (Bombela).  As this partnership is implemented according to a Concession Agreement, Bombela committed to measurable SED obligations in order to ensure that the project does not merely pay lip service to its developmental responsibility.

Bombela submits Monthly SED reports to the Province and the Independent Socio Economic Monitor (ISEM) within 45 calendar days after the end of each Contract Month.  The ISEM verifies the SED achievements claimed by Bombela and submits Monthly ISEM Reports on its findings about five weeks after receipt of the Bombela Monthly SED Reports.  For these reasons the achievements to date are summarised below for two different periods.

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 structuring of the SED obligations and the responsibilities of the ISEM are a first for any major project in South Africa and is congruent with global best practice.

The ISEM verified that the following was achieved by the Bombela and its sub-contractors by the end of August 2008:

1. Bombela has already created or sustained more than 9 800 local direct jobs and an estimated total of 52 900 direct, indirect and induced jobs.
2. Black persons are holding 25% shares in the Concession Company, the Turnkey Contractor and the Operating Company.  Furthermore, black persons are holding 10% of the shares in the Civil Contractor and the Electrical and Mechanical Contractor (E&M).
3. More than R1 400 million was spent on procurement from, and sub-contracting to BEEs, compared to an obligation of about R870 million.  More than 260 BEEs have benefited from the project to date.
4. More than R480 million was spent on procurement from, and sub-contracting to New BEEs, compared to an obligation of about R310 million.  More than 90 New BEEs have benefited from the project to date.
5. More than R330 million was spent on procurement from, and sub-contracting to SMMEs, compared to an obligation of about R140 million.  More than 230 SMMEs have benefited from the project to date.
6. More than R980 million of South African materials, plant and equipment have been purchased compared to an obligation of R770 million.
7. More than R30 million was spend on Human Resource Development compared to an obligation of R27 million.
8. Unskilled staff and semi-skilled staff attended more than 9 770 courses to improve their skills levels.
9. Top management, senior management, middle management and junior management of Bombela attended more than 1 210 training courses.

At the end of September 2008 Bombela has increased its labour force and significantly exceeded its obligations, which can be summarized as follows:

• 11 001 people were employed.
• 9 940 local people were employed, compared to an obligation of 6 772.
• 8 962 HDIs were employed, compared to an obligation of 5 018.
• 799 women were employed, compared to an obligation of 366.
• 65 people with disabilities were employed, compared to an obligation of 51.

It is evident that to date the Gautrain Rapid Rail Link project has already made a significant impact on socio economic development in Gauteng, and for that matter, in South Africa.