IRPTN Hearings - Johannesburg - NDP

Report
City of Johannesburg
12 September 2013


Context and
introduction

 Key milestones
 Proposed budget
2012/13 Progress
 Progress (financial/non

financial)
 Roll overs

Plans for 2014/15 MTEF
 Land use (TOD)
 Rail (Gautrain/PRASA)
 NLTA implementation
2013/14
 Key milestones
 Summary of budget
 Progress to date
Plans for integration

Other issues for consideration







ON 2 May 2013, Mayoral Committee approved improved BRT with strong focus
on integration with walking, cycling and other modes for Phase 1C between the
Inner City, Alexandra and Sandton
On 9th May 2013, Executive Mayor announced strong focus on Transit Orientated
Development in his State of the City address
On 21st June, the Mayoral Committee approved a turn around business plan for
Metrobus and that the Metrobuses to be refleeted should be dual fuel (biogas
and diesel). A tender for the new buses has been issued and the restructuring of
Metrobus is proceeding.
On 1 July ,we moved from paper tickets to a bank based smart card – first
distance based bank card system in world
On 10 Sept 2013, the Mayoral Committee approved our Strategic Integrated
Transport Plan Framework which includes a high level public transport network
and identifies the key corridors for public transport development going forward
Last month, Province launched their Gauteng 25 year master plan which includes
an intention to set up a Transport Authority – on 10 September, the Mayoral
Committee agreed to be represented on a Gauteng Transport Commission but to
further engage so that any future institutional form does not jeopardise the
integration of land use and transport functions which are critical to remain a
competitive City
On 14th October, we are launching our Phase 1B services….
Passengers numbers have dropped since introduction of AFC system
 Reasons include unfamiliarity and technical glitches, increased prices relative
to taxis, opposition to the ABSA loading fee
 Leading to political pressure for flat fare – not to discriminate
 Phase 1B to be operated by an Interim service provider due to slow progress of
negotiations
 Obstacles include inability to make progress with both PUTCO and province
on how PUTCO will participate, unrealistic expectations on fee per km, how
to address “Chinese vehicles”
 Uncertainty on bus procurement and funding
 AG qualification on BRT model has impacted negatively on City
 Decision to no longer fund fleet directly will impact on future cost of BRT
model to operators and the City
 Lack of responsiveness from DOE, NT, SARS on specific issues facing BRT Restraint of Trade vs. dividend, VAT on BRT, future AG qualifications, regulation
of alternative fuels

4
Part 1
Roads
• Phase 1B Trunk roadways (Noordgesig to Parktown- 18 km): completed
• Upgraded 1B feeder route along Griffiths road (approx. 3 km)
• Upgraded Braamfischer Roadway and intersections adjacent to
Meadowlands Depot (approx. 1km)
• Phase 1C: Traffic impact analysis, preliminary design of trunk roadway
completed and detail design of trunk roadway commenced
Depots and Terminals
• Depot completed at Meadowlands for 270 buses
• Intermodal Terminal at Ndingilizi: Construction to be concluded by end
September
• Preliminary designs for depots at Selby, Avalon and Alexandra completed
• Preliminary design of New Control Centre in Selby completed
• Day time layover facility at Selby: Construction commenced
Station and Precincts
• Phase 1B Stations completed (15 Stations), commissioning for
operational start commenced.
• 48 Station Precincts (All Phase 1A and 1B Stations) upgraded to include
landscaping, dustbins, benches etc.
Signage and Road
markings
• Extensive Passenger information and static pedestrian signage upgrades
done for both Phase 1A and 1B(at Stations and within 500m of trunk
routes): approx. 85 % complete
Bridges and
underpasses
• Road under rail bridge underpass completed in Newclare (Phase 1B)
• Pedestrian Bridge (2) over Rail in Newclare (Phase 1B) construction
commenced
NMT (Pedestrian
sidewalk upgrades)
• Assessment of Phase 1A and 1B trunk and feeder routes completed, and
upgrading of sidewalks on Route C1 , first 3.5km 90% completed.
Control Centre
• During the 2012/13 financial year, the Control centre
equipment was already operational for phase 1a.
• The Control centre equipment is sufficient for both Phase 1a
and 1b.
AFC
• Successfully installed AFC equipment at stations and buses,
• Implementation of the back-end technical platform,
• Successfully integrated the AFC system with APTMS for
distance-based fare calculation,
• Integrated the AFC technical platform with the Absa’s backend system,
Passenger info
• During this financial year, the Passenger information was
already operational on the Phase 1a stations and buses.
• Equipment for Phase 1b stations and buses were ordered and
delivered,
• Installation of the Passenger information on the phase 1b
stations and buses commenced.
7
Phase 1A passenger numbers and revenue
8
ROUTE
JULY
AUGUST
VAR%
Sept Forecast
C1
24918
32446
30%
42248
C2
27733
33563
21%
40619
C3
3194
5222
63%
8538
F1
7837
9631
23%
11836
F2
19790
23629
19%
28213
F3
2160
2582
20%
3087
F4
1474
1768
20%
2121
F5
5153
5789
12%
6503
STATIONS
249009
246188
-1%
251112
TOTALS
341268
360818
6%
381488
9

AFC implementation






•
• Passenger trips for July 2013 is
49% less than passenger trips
in June 2013
• Passenger trips in August 2013
is 6% more than the passenger
trips in July 2013
Card loading:
•
•
•
•
Implemented in May 2013.
Uptake very slow as passengers preferred paper tickets.
July was the real implementation date as there were no
paper tickets – implemented with annual fare increase
High levels of passenger dissatisfaction due to increased
costs, bank loading fee and minimum amount
The distance based fare system is perceived to be expensive
as most people are paying more than they used to.
Some technical problems but not major factor in passenger
dissatisfaction
76% of passengers ‘ loadings are under R61 and are charged a
load fee of R1.50 per loading.
This makes the system expensive for the majority of current
passengers and for the POOREST
246 188 station tap-in’s and 114 630 feeder entries
Penalties
•
•
•
Decreased by 41% from previous month; and
Only 3.3% of total ridership got penalties
This shows that passengers are learning how the system
works
10
Seat allocation
Taxi industry more or less agreement, some associations not participating –
concern is Faraday which should remove 2 routes
PUTCO withdrew dispute on seat allocation but no agreement on how they
will participate
Small bus operators – contracted services providers (e.g. funeral services)
not affected by some scholar transport are indeed affected. Other
operators not agreeing
Metrobus – affected by only five buses. Will be withdrawn by Mayoral
Committee
Bus Operating
Contract
Agreement
95% agreement and a resolution passed agreeing not to re-open those in
agreement.
Operators uncomfortable about bus ownership, 12 year contract and
certain insurance aspects.
BOCA public participation process ended on 31st August. No public
comments. NT also not commented.
Fee per km
90% agreement on input costs. Agree on all salaries except that of CEO
Presented ‘profit approach’ - have come back and asked for more than
double of what we proposed
Awaiting for SARS ruling before finalise approach to restraint of trade.
Employment
and value chain
90% agreement on employment framework agreement. Potential problem
with how to absorb PUTCO employees.
Value chain agreement
negotiations initiated.
Participation
Framework
Doing three different agreements:
•
Taxi industry: Comprehensive draft tabled and negotiations
underway
•
PUTCO: No movement due to no movement with Province.
Becoming very serious threat .
•
Learner transport: Prepared draft but no support from other
operators
Rea Vaya Phase 1B to start
operations in October
11
Budget
Actual
Variance
R’000
R’000
%
PTIS - Capex
972,405
479,572
49%
PTIS - Opex
328,487
326,273
99%
1,300,892
805,845
62%
127,490
101,992
80%
75,107
74,549
99%
202,597
176,541
87%
1,503,489
982,386
65%
Total PTIS
City funding
Rea Vaya fares
Total other funding
Total
Budget
Actual
Variance
R’000
R’000
%
Description
39,899
326,170
5,874
0
15
0
Roadways construction and consultants
65,099
88,239
136*
Depots
84,361
61,343
73
Land
48,451
0
0
Automated Fare Collection and APTMS
231,706
188,385
81
Intelligent Transport System
122,551
100,204
82
47,881
571
5,716
29,093
0
6,434
61
0
113*
972,405
479,572
49
Stations construction and consultants
Phase 1B buses
Station Precincts
Walk in Centre
Passenger Information Signage
Total
*- Negative because the rest of the invoices were paid out of other line items.
Description
Budget
Actual
Variance
R’000
R’000
%
Bus Operating Company
209,000
208,666
100
Repairs & Maintenance
40,593
39,746
98
Fare Collection
13,808
13,330
97
Station Management
31,273
31,044
99
Taxi Compensation
33,813
33,487
99
328,487
326,273
99
TOTAL
DETAILS
AMOUNT
R’000
Original Allocation as per DORA
1,298,702
Less: NDOT Budget adjustment
145,000
Revised Allocation
Less: Amounts withheld due to projected under spend
2012/2013 Cash disbursement
1,153,702
103,702*
1,050,000
Less: Expenditure Incurred
805,528
2012/2013 PTIS Balance Unspent
244,472
* Cash withheld as agreed with National Department of Transport and National Treasury
DETAILS
AMOUNT R ‘000
2012/2013 PTIS Balance Unspent
244,472
Add: Amounts withheld due to projected under spend
103,702
TOTAL ROLL OVER
348,174
Reasons for Under spending:
• The 2012/2013 budget included the purchase of buses of which the first
batch of 22 buses was only received in July 2013 due to delays in the
procurement process.
• ITS equipment for Phase 1B buses and stations was ordered in June 2013
and will only be delivered and paid for in the 2013/2014 year.
• The overall ITS communication network for Phase 1B was not completed
in the 2012/2013 financial year.
Part 2


Phase 1A: Increased patronage and quality service
Phase1B:
 Ridership to 30 000 by June 2013
 Phase 1B operating company established

Phase 1C
 Construction to start on key projects (see next slide)
 Business plan approved
 Engagements with affected operators in place

Other





AFC stabilised at policy, operation and technical level
Metrobus becoming a scheduled services
Increased institutional stability and certainty
Increased integration with walking, PRASA and other modes
Integrated Transport Network (public transport, walking, freight –
detailed allocation of modes to appropriate demand)
18








Roads – Approx. 18km of median trunks
(Including 2 new bridges - M1, Katherine)
Stations – 10 median stations
Interchanges– 3 - Westgate, Alex/Wynberg, Sandton/Gautrain
Dedicated cycle and walking lanes –
approx 10 km within Alexandra and 5.2km
from Alexandra to Sandton (including a
new ped/cycle bridge over M1 Motorway)
Depots (1) –Alex/Wynberg
Daytime layovers – 3
Control Centre's – One new Central
facility (Selby/City)
Park and Rides (PPP Partnerships) –
various locations on network
Public transport priority on feeder and
complementary routes
Estimated cost: R 2,9 billion
(Subject to Tender prices received)
19
PROGRESS 13/14 TO DATE

Integration with City’s Strategic Area
Framework for TOD in Phase 1C area








Three new stations added on Phase 1C
(Yeoville, Corlett Drive, Dolls House)
Public square at Alex interchange prelim
design completed. Geotech drilling completed
Iconic ‘great cycle and walk’ from Alex to
Sandton planning completed
1C Councillor consultation and planning for
public meetings completed. Public
meetings arranged for 17,18 & 28 Sep 2013.
Detailed design of 1C roadways nearing
completion, tender documents being
prepared
Detail design of Selby Depot and New
Control Centre in progress. Prelim design of
Alex Wynberg Depot commenced
Ndingiliza Intermodal Terminus –
construction 90% complete
NMT upgrades along route in Soweto in
progress
MILESTONES 13/14

Construction of Phase 1C
roadways to start in
November 2013

Construction programme
aims for end 2015 completion
date for Phase 1C

1C Business plan to be
completed between April and
June 2014
21
PTI Grant PTO Grant PTNO Grant
R’000
Planning Costs
Operating Costs
Equipment Costs
Infrastructure Costs
Transitional Costs
Maintenance Costs
Total excluding VAT
VAT
Total including VAT
R’000
R’000
Other
Total
R’000
R’000
95,831
0
500
17,476
113,807
0
0
101,221
245,505
346,726
74,180
0
60,565
0
134,745
489,614
0
0
0
489,614
0
1,205
99,918
0
101,123
41,362
0
0
0
41,362
700,987
1,205
262,204
262,981
1,227,377
98,138
0
36,709
4,219
139,066
799,125
1,205
298,913
267,200
1,633,643
21
1,400,000
1,200,000
1,000,000
800,000
Expenditure
PTI and PTN Funding
Phase 1B
Full Service
600,000
400,000
200,000
Phase 1C
Construction
Commence
Phase 1B
Starter
service
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
22
Part 3
What
2014/15
2015/16
2016/17
Roadways
Approx 13km of
Phase 1C Trunk
Route completed
All 1C roadways
completed
Randburg/Soweto
initiated (decision
pending)
Stations
5 Stations
completed on 1C
Trunk Route
All (10 )Stations on
1C Trunk Route
completed
Prelim design of
stations for
Randburg/Soweto
route(decision
pending)
Depots
City Depot under
construction. Alex
/Wynberg Depot
construction
commences
City depot
completed.
Alex/Wynberg
Depot construction
in progress.
Alex/Wynberg
Depot completed.
24
What
2014/15
2015/16
2016/17
Customer Satisfaction
Index
82%
85%
87%
Passenger Numbers
(Rea Vaya )
85,000
85,000
119,233
Passenger Numbers
(Metrobus)
90,000
95,000
102,000
95%
95%
Uptime of AFC and APTMS 95%
25
PTI Grant PTO Grant PTNO Grant
R’000
R’000
R’000
Other
Total
R’000
R’000
172,996
0
0
57,505
230,501
0
0
101,346
293,441
394,787
Equipment Costs
110,755
0
60,564
0
171,319
Infrastructure Costs
888,278
0
0
0
888,278
0
4,821
134,192
0
139,013
43,430
0
0
0
43,430
1,215,459
4,821
291,281
350,946
1,867,328
170,164
0
40,779
11,195
222,138
1,385,623
4,821
332,060
362,141
2,090,141
Planning
Operating Costs
Transitional Costs
Maintenance Costs
Total excluding VAT
VAT
Total including VAT
26
PTI Grant PTO Grant PTNO Grant
R’000
R’000
R’000
Other
Total
R’000
R’000
116,017
0
0
14,774
147,707
0
0
151,313
413,132
564,445
Equipment Costs
214,379
0
130,818
0
345,197
Infrastructure Costs
355,218
0
0
0
355,218
0
7,232
152,185
0
161,827
63,291
0
0
0
63,291
Total excluding VAT
748,904
7,232
427,084
427,906
1,611,126
VAT
104,847
0
59,792
54,319
218,958
Total including VAT
853,751
7,232
486,876
482,225
1,830,084
Planning
Operating Costs
Transitional Costs
Maintenance Costs
27
PTI Grant PTO Grant PTNO Grant
R’000
Planning
Operating Costs
Equipment Costs
Infrastructure Costs
Transitional Costs
Maintenance Costs
Total excluding VAT
VAT
Total including VAT
R’000
R’000
Other
Total
R’000
R’000
36,153
0
0
8,600
44,753
0
0
155,159
640,643
795,802
40,200
0
196,227
0
236,427
102,650
0
0
0
102,650
0
9,642
235,147
0
244,789
67,088
0
0
0
67,088
246,091
9,642
586,533
649,243
1,491,509
34,453
0
82,115
84,859
201,427
280,544
9,642
668,648
734,102
1,692,936
28
2012/13
2013/14
2014/15
2015/16
2016/17
R’000
R’000
R’000
R’000
R’000
PTI allocation
1,153,702
Less: Amount withheld
(103,702)
Add: Roll over
893,766
1,059,571
963,673
0
348,174
442,815
116,763
226,685
Less: Budget adjustment
Revised allocation
1,050,000
1,241,940
1,502,386
1,080,436
226,685
Less: Expenditure
(805,528)
(799,125)
(1,385,623)
(853,751)
(280,544)
244,472
442,815
116,763
226,685
(53,859)
Surplus/(Shortfall)
2012/13
2013/14
2014/15
2015/16
2016/17
R’000
R’000
R’000
R’000
R’000
268,000
236,000
287,000
0
Less: Expenditure
(298,913)
(332,060)
(486,876)
(668,648)
Surplus/(Shortfall)
(30,913)
(96,060)
(199,876)
(668,648)
PTNO allocation





In terms of an agreed seat allocation of Phase 1B, 18
PUTCO buses need to removed.
We have been in discussion with Province to remove
them in terms of contract provisions in respect of
‘operational efficiency’
In terms of NTLA regulations, PTOG funding for these
buses needs to come to the City from 14/15 financial
year
We will continue to discuss with Province whether
they will give us for remainder of 12/13 financial year
We have provided a budget based on our best
estimates. This amount is not agreed with Province.
Part 4
WHAT CAN WE EXPECT IN 2040?
The city population is expected to
increase from 4.43 million in 2011 to
6.57 million in 2040.
 Density per km2 will increase from
2 698 (2011) to 3 996.
 Significant increases in employment
by 2040 especially in
WHAT WILL THIS MEAN FOR
TRANSPORT DEMAND









Lanseria (160 000)
Modderfontein(132 000)
Lion Park (65 000)
Athol, Rosebank & Parktown North,
Sandton (60 000 each)
Midrand Strip (46 000)
Buccleuch (45 000)
Parkmore, Houghton Estate, Jhb CBD,
Limbro park, Islamic Institute (30 000 – 45
000 each)
Halfway Gardens, Randburg CBD, Austin
View, Troyeville, Cosmo, Roodepoort,
Benrose, Midrand-Noordwyk, Fordsburg
(15 000 – 30 000 each)



If we assume:
 Density and TOD reduces average
trip length to 19km.
 65% public transport due to huge
new developments on Rea Vaya
corridors (1A, B and C)
Then the public transport morning peak
hour demand is predicted to double from
298 000 trips in 2010 to 617 000 trips in
2040
And if these trips are assigned to the
transport network, the next page sets
out proposed new services for 2040
Route NO.
Highest vol
on route
9000 to 12000 pphpd
(pphpd) in
Year 2040
Appropriate Mode
(potentially or
planned already)
Rea Vaya BRT Routes – Existing, Planned and Potential
22
Soweto via Noordgesig and
Fairlands - Randburg
12000
New Rea Vaya BRT
2
Soweto to CBD via Perth
11000
Rea Vaya Phase 1B
(already built)
11000
Rea Vaya Phase 1C
5 CBD-Wynberg – Midrand
plus (plus links to Ivory Park and
11 Alexandra)
CBD-Sandton-Sunninghill
13
via Oxford
10000
Rea Vaya Phase 1C plus
Gautrain
Existing Rea Vaya
Phase 1A and Rail
(Naledi/Midway to
Park)
1
Soweto to CBD via Soweto
Highway
9500
3
Soweto (Baragwanath) via
Koma Street to Roodepoort
9000
New Rea Vaya BRT
9
Alexandra-Greenstone-Ivory
Park
9000
Rea Vaya Phase 1C
Route
No.
7 500 to 8500 pphpd
Highest
vol on
Appropriate Mode
(potentially or planned
route
(pphpd) in already)
Year 2040
Rea Vaya BRT Routes – Existing, Planned and Potential (Cont)
6
Alexandra-WynbergSandton
8500 Rea Vaya Phase 1C
Sandton-RandburgFourways-Diepsloot
New Rea Vaya BRT
(Fourways to Diepsloot)
8500
and Rea Vaya Phase 1C
(Sandton to Randburg)
7
12
8
23
24
Lanseria-Cosmo CityWoodmead
Roodepoort-Constantia
Basin- Randburg
8500 New Rea Vaya BRT
8000 New Rea Vaya BRT
Roodepoort-Rosebank
via Linden, Parkhurst
8000 New Rea Vaya BRT
Roodepoort-Northgate
7500 New Rea Vaya BRT
Route
Highest
Appropriate Mode
pphpd in (potentially or planned
Year 2040 already)
Upgraded Rail and possibly BRT as well
17
R2
18
19
16
*
Westonaria - Thokoza
Park via Moroka
Bypass
New Canada – CBD
(Main Reef Road
alignment along EastWest Development
Corridor/mining belt)
Westonaria – Eldo.
Park - CBD
8000 Upgraded Rail
Upgraded Rail
7 000
7500* Upgraded Rail
Lenasia - CBD (via
6200*
Eldorado Park and Golden
Highway)
Orange Farm – CBD via
Golden Highway, M1 North
5500*
and Booysens Rd
*Total
corridor
Stretford-CBD corridor,
incorporating Routes 16, 18 volumes
and 19, plus flows from
of 14 700
in places
Sedibeng
Upgraded Rail plus possibly new
Rea Vaya BRT route which will
also serve Eldorado Park
demand for direct route to CBD
Upgraded Rail
Upgraded Rail from Stretford
(plus use Midway-Park Station
modernisation coridor)
Highest
pphpd in
Year 2040
Route
Appropriate Mode
(potentially or
planned already)
Upgraded Rail and possibly BRT as well
20
Katlehong/Vosloorus
(Ekhuruleni) - CBD
21
Thokoza (Ekhurhuleni) -CBD
**
Germiston-CBD corridor,
incorporating Routes 20 and
21 if rail is preferred mode for
these routes
Upgraded Rail plus
5800** possibly
BRT/standard bus
Upgraded Rail plus
5600** possibly
BRT/standard bus
**Total
Upgraded Rail
corridor
(Germiston-Park
volume will section part of
exceed
modernisation
10 000
coridor)
LAND USE

City’s Growth Management Strategy has always followed public transport corridors

Going forward there is a greater focus on planning, development control and public investment
along public transport corridors – TOD and “Corridors of Freedom”

City’s development planning Department have done strategic area frameworks for Phase 1b and
1C corridors and intend putting in place concrete measure at identified station modes including –
changing land use conditions, extra CAPEX for precincts and public amenities, improved urban
management, development partnerships with private sector and academic institutions (Wits/UJ)
OPERATIONAL/MODAL INTEGRATION

Integration between BRTs, rail and conventional bus is being planned and implemented at:
 Transfer points (e.g. Park Station)
 Route alignment/modifications – Metrobus operational plan
 Ivory Park/Tembisa – working with Ekurhuleni Metro
 Considering integrating mini bus taxis as feeders/last mile service for Rea Vaya and attracting
a subsidy linked to agreed performance standards in 1C

Working with PRASA on NMT and public transport integration at nodes on flagship corridor (e.g.
Roodepoort, Naledi, Dube, Jabulani)
INTERGRATED TICKETING

While fare harmonisation is more important than the fare medium, our system being bank based
can work on other modes and we are putting out tender to extend Rea Vaya AFC system for
Metrobus
39





VAT –progress?
NLTA amendments – progress?
Bank transaction costs and AFC – see earlier
High/low floor – see next slide
AG qualification – see next slide

Capacitation - the lack of BRT skills in the public and
private sector is increasingly impacting on quality of
delivery - a problem which needs to be collectively
addressed by all spheres of government by improved
co-ordination and attention to capacity building,
knowledge sharing, development of formal
qualifications and accreditation etc.

The City of Joburg has a high floor legacy system as
was advised by international best practice at the
time and for universal access considerations

The NDOT position stated in its memorandum dated
2 August 2013 is that buses with lifts are not
supported under any circumstances.

We are already facing serious threats to the viability
of the Rea Vaya and a return to taxis and so we are
reluctant to implement even low floor feeders and
risk:
 Reducing the operational efficiency of the
system and no longer be able to make use of
complementary buses which are very effective
and popular and appropriate for long distance
commuter travel due to our apartheid legacy
 Force passengers to transfer to get to their
destination of their choice in the inner city – we
know passengers do not like to transfer
 Further reducing road space along the
constrained Louis Botha corridor that could be
used for NMT and a public environment
conducive for TOD
 Increasing operational costs to the system which
the City will have to bear – we are working on the
details of this
41

We have recently received our 1B buses
and the lifts are improved from 1A buses,
do not require the driver to exit the bus
and mean that there can be completely
level boarding

The 1C Sustainability Study approved by
the Mayoral Committee recommended a
continuation with the high floor legacy
system. We will however consider a
low/high transfer station as part of our
work on integration with Ekurhuleni

Further we are continuing to invest
significantly in universal access and side
walk improvements as part of completing
our streets across the entire BRT system
and City.
42



AG qualified City on BRT for two main reasons:
 City retains control over the buses for duration of
BOCA: The BOC contract states that the
vehicles should not be use for any purposes
than to fulfil its obligations iro the BOC services
 A finance lease exist, risks and rewards thereof
remain with City despite legal ownership having
transferred: The lifespan of the buses in relation
to the term of the BOCA is approximately 70%
or more of the life of the buses that will be
enjoyed exclusively by the City
City has tried many avenues but has now accepting
the qualification and an ‘accounting solution’
However there are unintended consequences of
such and there will be continue to be unintended
consequences of a model that has not been
properly interrogated and aligned in respect of all
financial, legal and accounting requirements.
43
City proposes:
Current model should be seen as ‘incubation
model’ and we must move in 12 years to
negotiated contract and buses being bought by
operators with no guarantee by Cities
• Cities and NDOT to work together to:
• Review risks sharing in BOCA
agreements including considering
whether ‘exclusive use’ can be
changed
• Look at ways of better balancing local
content and ‘cheap’ financing from
ECA issues
• Develop guidelines for accounting
practice for all cities
• Improve predictability for Cities (what
is NDOT and NT saying re bus
ownership?

The City of Joburg continues to lead in
innovation and delivery of the Rea Vaya BRT and
increasing an integrated and transformed public
transport, walking and cycling

From a year of consolidation (12/13), we are
moving to a year and MTEF period of
heightened delivery and well as on going
innovation and transformation

We thank the NDOT and NT for their on going
support.
44

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