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Nelson Mandela Bay’s Integrated Public Transport System Facing R2.9 Billion Funding Deficit Over Four Years

Aug 27, 2014
Nelson Mandela Bay’s Integrated Public Transport System Facing R2.9 Billion Funding Deficit Over Four Years

Nelson Mandela Bay’s Integrated Public Transport System (IPTS) is facing a funding deficit of R2.9 billion between the 2014/15 and 2017/18 financial years, according to a report to be sub-mitted to the Infrastructure, Engineering and Energy Committee later this week.

The report shows that while total grant funding of R3.8 billion is required only a fraction over R1 million has been allocated while there was also over expenditure of approximately R130 million in the 2013/14 financial year.

The report says the budget proposal has been submitted to the National Department of Transport.

It also reveals that starter services on the Cleary Park to the Port Elizabeth CBD and PE CBD to the university’s Summerstrand campus will now only start in January next year and not in September this year as was initially planned.

In terms of the roll-out plan, the Cleary Park-Uitenhage CBD; Cleary Park-Makro and PE CBD-Greenacres routes will be launched in January 2016 and local routes around the Cleary Park areas as well as the Uitenhage area in January the following year.

The report stresses, however, that the phasing in of the services is dependent on the approval of additional funding.

It states that a Public Transport Opera-tor Verification (PTOV) is in progress while an IPTS prospectus was being developed for the whole system, providing a detailed description.

The report states that negotiations with operators were delayed as a result of an outstanding payment for start-up funding, adding that this had now been re-solved and negotiations were expected to continue.

In addition, an industry “transition plan” was currently being developed to deal with negotiations, verification, market share, compensation, business development and employment.

The report says that the Automated Fare Collection System tender is at “an advanced stage” and a draft tender document is currently under review.

Safety and security risk assessments are being conducted on starter routes and CCTV cameras are currently being in-stalled. - MetroMinutes