Wed Oct 18 16:31:51 SAST 2017

Prasa rejects rumours of stock renewal crisis

2012-11-26 11:44:38.0 | CHRIS MORE |

THE Passenger Rail Agency of South Africa (Prasa) has come out to set the record straight regarding the affordability of its R40bn Rolling Stock Fleet Renewal Programme.

WRONG PIC - story is about rail renewal, not ROAD TAX: Sanral says it will resort to the law to enforce payment when tolling is implemented at the end of April. Toll Roads. Lynwood, Pretoria Pic: Robert Tshabalala. 04/08/2011. © Financial Mail. Sunday World 22/04/2012, page 4 Robert Tshabalala

The parastatal has been responding to queries raised in various quarters claiming that the company had asked the national treasury to bail them out and that the latter had refused to do so.

Prasa spokesperson Moffat Mofokeng says it is important that no misinformation be spread in the public domain about a project of "great significance in the renewal of our fleet".

In a media statement released on Friday, Prasa states that speculation has been doing the rounds about the affordability of its programme to revitalise passenger rail services.

Most of the speculation has focused on the R40bn affordability limit the treasury has offered Prasa.

Some have interpreted the limit to mean that Prasa has undertaken the huge project when it does not have the money to finance it.

This interpretation, Prasa says, is a gross misunderstanding of the process and is blatantly wrong.

Prasa states that:

We are working very closely with the national treasury. There are no differences between Prasa and the treasury and we are happy with their support in this process.

Seven rolling stock manufacturers have submitted bids since the close of the Request for Proposal. Those bids are currently being evaluated and, once the evaluation has been concluded, Prasa will inform the public about the outcome of the process.

Prasa is not asking for additional money. The programme's cost will be determined once the bidding process has been concluded.

"Given that the evaluation process is still under way . Prasa will not comment further on this issue until the process has been concluded ."

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