GAUTRAIN TRANSLATES INTO ECONOMIC GROWTH

Posted on Mar 13, 2008 in Media Releases

“Through Gautrain, we have been able to grow the labour absorption capacity of the provincial economy. This has in turn translated economic growth into the creation of new employment, contributed to skills transfer, reduced inequality and poverty”, said MEC Mashatile.

On the occasion of the tabling of the 2008/09 Gauteng Budget to the Legislature Gauteng (28 February 2008) MEC for Finance and Economic Affairs, Paul Mashatile mentioned the following in relation to Gautrain:

Developments in Gauteng indicate to us that we are succeeding in our effort to enable faster economic growth and job creation. One of our major successes thus far in enabling faster economic growth and job creation is the implementation of the Gautrain Project.

Through this project, we have been able to grow the labour absorption capacity of the provincial economy. This has in turn translated economic growth into the creation of new employment opportunities and has contributed to skills transfer, reduced inequality and poverty.

Through the Gautrain project we have also been able to expand participation in the provincial economic mainstream through the promotion of Broad Based Black Economic Empowerment (BBBEE) and preferential procurement especially targeting Small, Medium and Micro Enterprises.

Since the inception of this project the following milestones have been reached.

  • More than R648 million has been spent on procurement from, and sub-contracting to more than 180 existing BBBEE companies;
  • More than R170 million has been spent on procurement from, and sub-contracting to more than 60 new BBBEE companies;
  • More than R149 million has been spent on procurement from, and sub-contracting to more than 130 Small, Medium and Micro Enterprises and;
  • South African materials, plant and equipment to the value of more than R313 million have been purchased.

To further accelerate the growth of the provincial economy and create more jobs we will target specific economic sectors which have a potential to accelerate economic growth and create jobs.

Comrade Speaker, we are delighted to announce that; through the prudent management of our resources we have been able to reduce the borrowing obligation for Gautrain from R5.2 billion to R4.2 billion.

This we did by allocating an additional R1 billion to Gautrain from our reserves in the Revenue Fund during the 2007/08 financial year.

The Department of Public, Transport, Roads and Works has also receives a total of R 6 billion in conditional grant funding over the MTEF and R 5.6 billion over the MTEF from the provincial fiscus for the implementation of the Gautrain project.

The total allocation for Gautrain over the MTEF is R 11.6 billion.

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