Remarks by the Minister of Transport, Ms. Dipuo Peters during the announcement of successful bidders for the Passanger Rail
Agency of South Africa (PRASA) Rolling Stock Fleet Renewal Programme 01 August 2013, PRASA House, Hatfield
The DDG for Rail in the DoT, Mr. JD de Villiers Chairperson of the PRASA Board, Mr. Buthelezi The Group CEO, Mr. Lucky Montana Officials from the Department of Transport The entire PRASA Team Members of the Media Ladies and Gentlemen
It gives me great delight that we are today witnessing the culmination of a process whose outcome has been eagerly anticipated.
This presents an opportunity to all successful bidders to gear themselves up for the realization of the intended outcomes of the Rolling Stock Fleet Renewal Programme.
The Passenger Rail Agency of South Africa (PRASA) has selected the B-BBEE entities to participate as shareholders in the Project Company, which is the company which will undertake the Rolling Stock Fleet Renewal Programme.
The selected B-BBEE entities will participate in the shareholding of the Project Company, together with the PRASA and Project Company employee trusts as well as the educational trust, which is for the development of rail sector skills such as those of engineers, artisans and technologists.
PRASA is of the view that the selected B-BBEE entities together with the 3 trusts, create broader participation, which is one of the objectives of PRASA in the Programme
PRASA initiated the process for the participation of the B-BBEE entities in October 2012. Bidders submitted their proposals on 14 December 2012. PRASA received proposals from 60 bidders. Some of the submitted proposals included both active black enterprises and investor black enterprises, bringing the total number of proposals received to 74.
Of the 74 proposals submitted:
- 38 complied with the mandatory response requirements in the
Invitation to Participate (ITP); and
- 36 did not meet the mandatory response requirements in the ITP.
PRASA short-listed the bidders who complied with the mandatory response requirements in the ITP and those bidders were invited to participate in a further process in relation to the procurement.
This further process was to enable PRASA to solicit further information from the short-listed participants for purposes of further interrogation, consideration and due diligence on some of the key response areas in terms of the ITP.
This also included the verification by PRASA of the track records and experience of the B-BBEE entities from independent sources. This process was initiated in April 2013 and bidders had to submit their supplementary proposals on 31 May 2013.
This procurement process has created an opportunity for entities to participate in the equity of the Project Company who, but for this process, would not have had the opportunity to participate. PRASA sought to procure the following entities:
o black enterprises currently involved in the rail sector;
o black enterprises wishing to enter the rail sector (new entrants);
o investor black enterprises.
Following the procurement process which required the bidders to have a certain level of shareholding by black people, black women and participation by people with disabilities, technical ability as well as financial strength and capability, PRASA is pleased to announce that the following bidders have been selected as the B-BBEE shareholders in the Programme:
- 1 black enterprise currently involved in the rail sector being
Khiphunyawo Rail, comprised of SA Freight Logistics (Pty) Ltd and
Autism South Africa, among others; and
- 1 new entrant, being Community Rail Services (Pty) Ltd, which is
comprised of a number of people with disabilities, black female youth,
Parmtro Investments (Pty) Ltd and Kaelo Investments (Pty) Ltd; and
- 1 investor black enterprise, which is the Elgin-Identity Rail
Corporation, comprised of Elgin Engineering (Pty) Ltd, Identity Capital
Partners (Pty) Ltd and Disability Empowerment Concerns Trust,
which is a trust established for the benefit of people with disabilities.
As this day marks the beginning of the Women’s Month, it is hearting to see that women empowerment is one transformation imperative that was not compromised. Also heartening is the inclusion of people with disabilities.
The creation of job opportunities, local content, skills development and community upliftment remain the essential ingredients in the success of any procurement process of this magnitude.
As Government, we take it upon ourselves to ensure that partnership with the private sector and other stakeholders are forged to ensure the fruition of these commitments.
It also remains our responsibility that all the Government’s resource injection will yield maximum benefit for the citizens of South Africa.
We are going to continue, through the Department of Transport, the Department of Trade and Industry and the National Treasury, to provide the required technical and administrative support to all the preferred bidders and PRASA, throughout the project.
It is our hope that henceforth, processes will unfold smoothly to ensure that there are no delays in the actual implementation phase. My Department is always willing to iron out any deadlocks that might be encountered along the way.
We also take it upon ourselves to ensure legislative compliance throughout the programme implementation.
Allow me to wish all the preferred bidders well as they embark on rigorous implementation. It has lift off. Isukile!
I thank you all