DA -The R40 billion funding to PRASA is far too little

Mluleki Mrwebi

18 November 2012

The Democratic Alliance say the R40 billion funding commitment and affordability limit for a new fleet of trains for the Passenger Rail Agency of South Africa is far too little to provide for the number of trains which must be manufactured.

DA Shadow Minister Ian Ollis said the cost of the 7 226 units of rolling stock needed for the recapitalisation of PRASA’s new fleet is R123 billion, to be rolled out over the next 18 years.

PRASA CEO Lucky Montana told the Transport Portfolio Committee in October that Treasury has capped bids for the first 10 years of the roll-out programme at R40 billion, amounting to only R4 billion per annum.

Ollis added that he will be posing parliamentary questions to Transport Minister Ben Martins and Pravin Gordhan in this regard, because South Africa’s commuters should not have to bear the brunt of the omni shambles government has made of the economy.