Absa to fund Gautrain project

Posted On Thursday, 08 September 2011 02:00 Published by eProp Commercial Property News
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The Gauteng Provincial Government has awarded a R1-billion tender to the Absa Group to fund the Gautrain Rail Link Project

Gautrain ProjectThe project represents a public-private partnership between GPG and the Mbombela Concession Company. This is a term loan for a seven year period and the initial drawdown is expected to be done this year.

Gauteng Finance MEC, Mandla Nkomfe, described the deal as a milestone which signals a new form of public-private partnerships.

"I would like to express our sincere appreciation to Absa for agreeing to partner with the Provincial Government in this kind of transaction. I should hasten to say that this is the first time that this kind of a deal has ever been entered into by a provincial sphere of government," he said.

The Gautrain Rapid Link Project is a ground-breaking transport initiative that has already seen the modern state-of-the-art rail connection linking Tshwane, Johannesburg and the OR Tambo International Airport.

"The awarding of this tender reinforces the key role we play in the Public Sector environment and gives us an opportunity to strengthen our partnership with a key Provincial Government account," said Bobby Malabie, Chief Executive of Absa Business Bank.

"The resources that have been raised through Absa are within the budget of the GPG towards the construction of the Gautrain Rapid Link. 

"The R1-billion loan amount will be used to convert the short term facility that was made available to the province during the construction phase of the project.  From inception, the project was conceptualised such that it was to be funded by both government and the private sector," MEC Nkomfe explained

Last modified on Tuesday, 29 October 2013 12:41

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