The Ekurhuleni Metropolitan Municipality (EMM) stands by its Integrated Rapid Public Transport Network (IRPTN) and Bus Rapid Transport (BRT) Business Plan, which was rejected by the DA.
The business plan was tabled before council on April 30.
The metro said the city’s IRPTN is the most significant intervention to improve and promote the use of public transport in Ekurhuleni.
Mr Themba Gadebe, the spokesperson for the EMM, said as a municipality the well-being of residents is foremost in all decisions taken.
“The city embarked on the implementation of the IRPTN to give prominence to the metro’s transport vision, namely providing residents with accessible, affordable and integrated transport services,” said Mr Gadebe.
The project was developed from surveys conducted to understand the short-comings in the transport industry and the needs of the residents.
The National Department of Transport introduced the IRPTN in 2007 and a number of cities were nominated to benefit from the project.
“As Ekurhuleni, we agreed that we will wait and allow the other cities to go ahead with their implementation. Through their lessons, we developed an operational plan that was adopted by the council in 2009,” said Mr Gadebe.
This statement was in response to an article published by the NEWS online (www.bedfordviewedenvalenews.co.za) after the DA in Ekurhuleni expressed concerns over what they said is a poor financial planning process that was used to put together the IRTN and BRT project for the metro.
In a statement issued on May 13, Edenvale councillor, Clr Bill Rundle who is the DA Shadow MMC for Roads and Transport, said the reasons for the project in terms of socio-economic development for the region are important, as it will provide safe, affordable and manageable public transport to the community.
He said it is an initiative worthy of support by everyone.
The DA however, rejected the business plan, saying residents will have to make good on operating cost shortfalls which could be anything between R150-million to R190-million per annum for the next 12 years.
“It is the intention of the metro to recover some of the shortfall from the residents, through increased property taxes said to be increased annually by 1,8 percent over and above the standard increase.
“This could mean that the increase in the rates can escalate to as much as 10 percent per annum for a 12 year period,” said Clr Rundle.
In his response to the NEWS, Mr Gadebe said with the operational planning, the metro engaged with the other cities and professionals to develop detailed financial models.
“These models have been reviewed and tested against those cities that are implementing the project. The financial planning was a careful and detailed exercise over a period of three years to ensure that all areas are considered,” said Mr Gadebe.
He said the result of the financial planning indicated that, not unlike any other public transport in the world, it will require investment.
“As it is well-known that transport is an enabler for socio-economics, the metro considered these costing challenges and analysed the benefits that such a network will bring to the city,”said Mr Gadebe.
He said while the shortfall on operating the system is estimated at R150-million per annum, the analysis has shown that the project will be creating 4 742 direct employment opportunities and 12 336 indirect short-term jobs with an estimated total impact on household income of R1,6-billion.
It is estimated that the operations phase of the IRPTN will provide significant opportunities for temporary employment, with an estimated creation of 21 177 temporary employment opportunities.
“To date, the Ekurhuleni IRPTN project created a total of 436 jobs. The project will not only have a direct impact on households but also to the metro.
“Based on national data for the transport sector, a multiplier for investment in transport infrastructure and moveable assets can be expected. In addition, the project will have a positive impact to the GDP of the region with an estimated impact to local business sales of R12,5-billion,” said Mr Gadebe.
Further direct benefits, per the detailed financial planning of the metro, include improve land value and avoidance or delayed road upgrades.
“The 14 proposed stations in phase one of the system will improve foot traffic to the areas surrounding them and increase the land value of houses and business within a radius of 500 metres. In addition to the financial benefits as stipulated above, the network has also a number of user benefits which include time savings, lower fares and increased productivity,” said Mr Gadebe.
It is estimated that, in 2031, the system will save 105 902 passenger hours daily.
“While the above is directed at the operational shortfall, it is also noted that a shortfall on the CAPEX required funds. This has been identified through the detailed and thorough financial planning undertaken by the metro. It should be noted that to date, in the 2014/15 financial year, national government invested a total of R862,8-million and for the next MTEF period, a total of R2,1-billion is to be invested.
“Based on these allocations, the metro will benefit a total of R354,2-million in input VAT claims. Given the detailed financial planning, and through knowing the quantum of the problem, allowed the metro to implement plans to ensure a launch by introducing a staged approach. The metro is still advocating for additional funding by the National Treasury through continued interaction with the National Department of Transport,” said Mr Gadebe.
