BUSINESS NEWS
Gautrain firm gets R220m bond
Posted Fri, 26 Jan 2007
The Investment Development Corporation has posted a R220-million performance and retention bond on the Gautrain Rapid Rail Link Project in favour of a broad-based empowerment party, Strategic Partners Group Concession (SPGC). "The bond is for the BEE supplier to help them meet the contractual obligations of the Gautrain project," IDC spokesperson Dante Mashile said on Thursday. SPCG is a 25 percent shareholder of the Bombela Consortium, which was awarded the public private partnership project for the Gautrain by the Gauteng provincial government.
Geoffrey Qhena, IDC's chief executive, said the company's involvement in the project entrenched empowerment and reinforced its objective to transform the economy. "We will continue to provide guarantees and take up equity in projects that have huge developmental impact. Our involvement in the Gautrain project also diversifies our exposure," he said. The IDC has allocated about R853-million to public private partnership
businesses and a further R419-million for expansion or start up capital.
"We are an active participant and funder of strategic and developmental projects on the African continent," he said.
"We are excited about this transaction because it gives us an opportunity to play a role in Gautrain," said Ufikile Khumalo, IDC's executive vice-president for resources, industrial and utilities division. The IDC would sub-participate on the shareholder loan package through the Development Bank of South Africa, in line with its risk sharing principle in project finance. The IDC would also provide a R60-million project finance loan facility to SPGC. Other shareholders in the Bombela Consortium are Bombardier Transportation (25 percent), Bouygues Travaux Public (25 percent) and Murray & Roberts (25 percent).
Sapa
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