The MyCiTi integrated rapid transit (IRT) system is an initiative of the City of Cape Town to transform public transport in the city.
The City intends implementing Phase 1A of the MyCiTi system, with the emphasis on the bus rapid transit (BRT) component.
Phase 1A will comprise BRT public transport services in the inner city (from as far south as Hout Bay), from Atlantis, Blaauwberg, Du Noon, to Montague Gardens and the Central Business District (CBD).
It will also include a regular airport service to the CBD and a shuttle to Cape Town Stadium during events.
The areas serviced will include newly developed high-density residential areas as well as low-income communities.
The City has already invited the public to
comment on the updated Business Plan for Phase 1A, with the comment period expiring on 31 August 2010. One of the components of the Business Plan is the proposed model for title holding and use of the buses in the first round of Phase 1A contracts.
The proposal put out for comment now involves the following:
(a) The City has procured and proposes to continue to procure buses utilising the national Public Transport Infrastructure and Systems Grant.
(b) After purchase, the City will sell the buses to a financial institution, which will then lease them to the designated vehicle operators (VOs) for the period of the VO contract.
(c) The proceeds of the sale of the buses will be invested in the financial institution.
(d) The investment and returns earned on it will serve as the source of funds from which the City will pay the VOs their service payments, and thus will guarantee / secure payments and the VOs’ other obligations.
(e) The VOs will in turn pay the financial institution the lease payments, alternatively, the City will pay the financial institution on behalf of the VO.
(f) The City is considering an option to transfer the vehicles which are close to the end of their commercial life to the VOs at the end of the VO contract, to encourage the VOs to maintain the vehicles at a high level, thereby reducing system downtime, especially towards the end of the contract period.
In terms of the laws governing the City, the basic model briefly described above triggers two additional separate and specific public consultation processes to be run (in other words, additional to the public consultation processes on the Business Plan and on proposed long-term contracts):
(i)
Regarding the City's proposed transfer of ownership of the buses, in terms of section 14 of the Municipal Finance Management Act and the Municipal Asset Transfer Regulations; and
(ii)
Regarding the potential guarantee / security to be provided by the City, in terms of sections 46 to 50 of the Municipal Finance Management Act.
The City hereby invites comment on those aspects of the proposed model for title holding and use of the buses. Amongst other matters, comment is invited on the proposed transfer of the title of the fleet of buses, and whether the buses constitute assets needed by the City to provide the minimum level of basic municipal service, and on the fair market value of the fleet and the economic and community value which the City will receive in exchange for the fleet.
Two information documents relevant to these processes can be downloaded by clicking on the links below:
Correspondence must be sent to:
Mike Marsden,
Executive Director: Transport, Roads and Major Projects,
City of Cape Town,
P O Box 298,
Cape Town 8000
Fax: 021 400 5697
E-mail:
beverley.ball@capetown.gov.zaby no later than Tuesday 21 September 2010.
Questions may be directed to Beverley Ball at
beverley.ball@capetown.gov.za or on telephone 021 400 9139.