2005-11-09,+Gautrain+to+miss+World+Cup,+Business+Day

Business Day, Johannesburg, 08 November 2005 = Gautrain may miss SA’s 2010 World Cup kickoff = Chantelle Benjamin, Johannesburg Metro Editor

THE Bombela consortium is under no legal obligation to complete the Gautrain before the 2010 Soccer World Cup starts, and will not be able to if construction does not begin by January 1 as scheduled, local construction partner Murray & Roberts (M&R) said yesterday.

Although the project was not conceived with the World Cup in mind, it has become a key part of the bid and government has admitted that its progress is likely to be a key consideration for world soccer body Fifa when it conducts a 2008 inspection to assess SA’s readiness.

The Gautrain’s capacity to move people quickly from the airport to hotels in Johannesburg and Pretoria would be a major asset when the tournament begins.

Amid growing unease over the Gautrain, M&R said there was no agreement with government stipulating the project be completed in time for the World Cup, only that it be completed within 54 months, beginning January 1 next year. Millard Arnold, executive director and legal adviser to M&R, said: “Our commitment, understanding, obligation to government has always been that we would complete the project in 54 months.

“We would obviously like to finish the project in time for the World Cup, but if there are any delays to the project that prevent construction beginning on January 1, like we cannot complete financial closure with government in December, it will impact on completion time.” Arnold said the same conditions applied to other consortium members.

But Gautrain project leader Jack van der Merwe said yesterday that he was “puzzled” by M&R’s announcement as they were still negotiating the contract.

“That is the whole purpose of financial closure, to draw up a contact which we are still doing.

“Obviously there is a length to any construction contract.”

He would not be drawn on whether the present “commitment” with the consortium stipulated the number of months rather than a completion date linked to the World Cup.

But when Gauteng finance and economic affairs MEC Paul Mashatile announced the winning bidder in July he said: “The construction period allowed for is 54 months, which means the project will be completed a few months before the Fifa World Cup in 2010.”

Efforts to get comment from the consortium were unsuccessful, with Bombela project director Les Elliott referring questions to M&R.

In the worst-case scenario, should Bombela be unable to reach financial closure with government, the project will default to the losing bidder, Gauliwe.

The cabinet is expected to decide on final approval for the project next month.

Meanwhile Parliament’s transport committee chairman Jeremy Cronin said yesterday a “lengthy list of questions had been compiled” for Van der Merwe about the feasibility of the project. “We have not got involved previously because it was always seen as a provincial matter, but it has now become very much a national concern.”

From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A110074