Monday, February 8, 2010

Cape Town's Rapid Transit Costs Triple

The costs of implementing the City of Cape Town's Integrated Rapid Transit system have jumped from 1.3 billion Rand ($167 million USD) to 4.6 billion Rand ($593 million USD).

The project has more than tripled in cost, and R16-million of the amount needed for this financial year will be borrowed from the city's rates revenue and repaid in February when the national government allocates its grant funding for transport projects.

The latest adjustment comes after "further refinements" of the IRT's cost estimates.

The city has R584m in hand for a project that will cost an estimated R892m in the 2009/10 financial year, leaving it with a R308m shortfall that will be funded by external bridging finance of R272m.

IRT costs soar to R4,6bn
Cape Times
February 2, 2010