TRANSPORT: MyCiTi IRT Contracts Under Spotlight
Recent Western Cape Business News
The City of Cape Town has embarked on a public participation process to obtain the public’s input on the signing of multi-year contracts for the MyCiTi Integrated Rapid Transit (IRT) System.
City finances must be managed in terms of the Municipal Finance Management Act. Section 33 of the Act describes a process of public participation that must be embarked upon, whenever a local government intends signing contracts extending beyond three municipal financial years in length.
The four specific contracts which the City intends signing in relation to the MyCiTi IRT, stretch between 6 and 12 years.
Wherever a contract is intended to extend beyond three municipal financial years, the Act requires the Municipality to provide background information and to invite written comment from the local community, and to write to the relevant National and Provincial Government departments to obtain their comments. The City is required to initiate the public information process by advertising the matter at least 60 days prior to the Council meeting at which the contracts are to be considered.
Of these contracts, four are proposed to extend over a period spanning more than three municipal financial years. This is necessary to ensure continuity of service and for financial advantage to the City and its ratepayers. These contracts are to be signed with:
· vehicle operating contractors
· an automatic fare collection contractor
· a control centre contractor
· a station services contractor
It is intended that the Section 33 process will be focussed on allowing for the commencement of start-up services at the beginning of 2011. This requires that certain of the contracts must commence in the latter part of 2010.
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