2011-11-07: City advertises intention to enter into long term contract with public transport operators for Phase 1B of the Rea Vaya BRT
THE City of Joburg has advertised its intention to enter into a long term contract with public transport operators to set up a bus operating company for Phase 1B of Rea Vaya BRT. Phase 1B will run from Soweto to Parktown through Noordgesig, Riverlea, Westbury, Westdene, Auckland Park and will also have feeders from Yeoville and Parktown and will require a bus operating company operating 134 buses.
The proposed contract with the bus operating company (BOC) will run for 12 years. Section 33 of the Municipal Finance Management Act 56 of 2003 requires the City to engage in a public participation process when entering into contracts that will impose financial obligations on the City beyond the three years covered in the current annual budget.
The City through its Rea Vaya BRT Project is committed towards providing safe, reliable and affordable public transport to the residents of Joburg. One of the cornerstones of the project is to ensure that existing public transport operators affected by Rea Vaya are given an opportunity to own and operate the Rea Vaya busses. For that purpose the City needs to enter into long term contracts with the affected operators for the provision of the required bus operating service.
The Information Statement which is being published together with the draft bus operating contract indicates that the City anticipates that the contract will cost an annual amount of between between R130m per annum and R164m per annum, depending on various factors such as the actual bus prices, loan finance costs, and the price (fee per km) that would result from the contract to be negotiated with the affected operators.
These costs are to be funded wholly or in part from fare revenue to be derived from Phase 1B. The purpose of the public participation process is to obtain comments or representations from members of the public and stakeholders on the proposed long term contract.
The above mentioned Information Statement summarizing the City's obligations in terms of the proposed draft contract will be published in the local newspapers and announced through radio broadcasts during early November 2011.
Copies of the Information Statement and the proposed draft contract will be displayed on the Second Floor (West), Council Chamber Wing, Metropolitan Centre, 158 Loveday Street, Braamfontein, at the City's 7 Regional Offices, at all Satellite Municipal Offices and all 90 the Municipal Libraries, and on the City's official website.
The public has until 7 December 2011 to e-mail comments or representations on the proposed draft contract to segalam@joburg.org.za or deliver them to 11th Floor, North Wing, JRA Building, 66 Sauer Street (cnr Jeppe Street), Johannesburg, Fax: 011 870-4611 - Attention: Mr Segala Malahlela.
We trust that City residents take this opportunity to let us know of their views about entering into this long term contact.
Media queries can be directed to:
Tebogo Mogashoa
Stakeholder Liaison
Office of the MMC
Tel: 011 298 5269
Cel: 072 207 5945
Issued on behalf of:
Councillor Rehana Moosajee
MMC for Transport
City of Johannesburg
