Western Cape Business News

Send  Share  RSS  Twitter  10 Aug 2009

TRANSPORT: City Investigates IRT Budget


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The City of Cape Town will launch a full enquiry into the costs of the Integrated Rapid Transit (IRT) system.

City Manager Achmat Ebrahim announced that he is in the process of appointing an appropriate external agency to undertake the investigation.

Following the financial report on the IRT system to the City’s Finance Portfolio Committee, it is necessary to conduct a full investigation into the cost escalations of the project. The terms of reference, scope and duration of this enquiry will be determined in due course, but will include all aspects such as the reasons for the escalation, the underestimates, the process, expenditure and who was responsible for what.

Work on the project will proceed as contracts have been awarded. The investigation will run its course and the City will keep the public informed of progress. The City will, however, not pre-empt the investigation by speculating or drawing premature conclusions.”

It is important to note that the project still goes ahead, in terms of the Council approved budget, despite the investigation into the escalated budget of the IRT,” Ebrahim said.

Some elements of the proposed IRT will be used to implement the 2010 Soccer World Cup Transport Plan. These elements include:

  • Trunk services between the Airport, the CBD at the Civic Station situated below the Civic Centre and the Stadium.

  • An Inner City Feeder Service, around the City Bowl, the CBD, Green Point, Sea Point with links to Camps Bay and Hout Bay .

  • A match day shuttle service between the CBD Civic Station and the Stadium Station.

  • Depot facilities within the inner city.

After the completion of the FIFA 2010 World Cup, an IRT service will be implemented on the following routes:

  • Trunk services between the Airport and the CBD.

  • An Inner City Feeder Service, around the City Bowl, the CBD, Green Point, Sea Point with links to Camps Bay and Hout Bay .

  • Trunk Services between the Atlantis, the CBD and Granger Bay (September 2010)

  • Trunk Services between the CBD and Table View, as far as Bayside Centre (September 2010).

The City has funding from its own sources and from national government to complete the above routes which will cost R2,3 billion subject to national government confirming the funding allocation.

The further rollout of the full Phase 1A service will depend on the successful conclusion of negotiations with national government for further funding to lift the total project cost to R3.5 billion. Thus there is a shortfall of R1,2 billion to complete the rest of Phase 1A. In addition to this capital funding shortfall, the City needs a commitment from national government to an ongoing annual subsidy of up to R115 million after 2012. The City needs to secure funding for the rollout of the rest of Phase 1A which includes:

  • Extension of the Table View trunk service down Blaauwberg Road and Potsdam Road to Dunoon.

  • Table View feeder services.

  • Atlantis feeder services.

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