MEDIA RELEASE
NO. 632 / 2010
27 AUGUST 2010


The City of Cape Town invites the public to comment on the proposed model for title holding of the MyCiTi buses for the initial phase (phase 1A) of its Integrated Rapid Transit (IRT) system.

Phase 1A of the MyCiTi system will provide public transport services in the inner city and between the CBD and the Blaauwberg/Atlantis areas. It also includes a regular airport service to the CBD and a shuttle to the Cape Town Stadium during events.

A document describing the proposed model for title holding will be made available for viewing at all public libraries, Sub-council offices, and on the City’s website at www.capetown.gov.za/en/irt (click on ‘Public participation’).

Comments should be sent in writing, by no later than Tuesday 21 September 2010:

Post to:
Mike Marsden
Executive Director: Transport, Roads and Major Projects
City of Cape Town
P O Box 298
Cape Town
8000

Fax to: 021 400 5697

E-mail to: beverley.ball@capetown.gov.za

This public comment phase is one of several opportunities for public participation regarding the MyCiTi system.

The updated Business Plan for MyCiTi's Phase 1A (published earlier this year for public comment) considered various options for title holding of the buses. One of these options suggests that the City sell the buses to a financial institution, which will in turn lease them out to the designated vehicle operators (VO) for the duration of their contract. Consideration of this option has triggered an additional consultation process, which is prescribed by law.

Under this option, the proceeds from the sale of the buses will be invested in the financial institution. The City will use the investment and returns earned to fund service payments to the VOs. This could secure payments, as well as the VO’s other obligations. The VOs will in turn pay a lease to the financial institution. Alternatively, the City could pay the financial institution on behalf of the VO.

There is also an additional option to transfer vehicles which are close to the end of their commercial life to the vehicle operator to encourage them to maintain the vehicles at a high standard.

The proposal contains information on the valuation of the fleet of buses to be transferred, the expected proceeds of the sale, the amount of the proposed guarantee, and other relevant or prescribed information. For reference purposes, all documents relating to previous public participation phases are also posted on the City’s website.

Any queries can be directed to Beverley Ball at beverley.ball@capetown.gov.za or on Tel: 021 400 9139.

END

ISSUED BY:
COMMUNICATION DEPARTMENT, CITY OF CAPE TOWN

MEDIA ENQUIRIES:
JOHN MARTHEZE
ACTING PROJECT MANAGER: IRT, CITY OF CAPE TOWN
TEL: 021 400 9140/9139 CELL: 084 220 0256