The Gauteng Provincial Government will officially assume full ownership of the Gautrain on 28 March 2026, marking the conclusion of the 19.5-year Bombela Concession Agreement and the completion of all financial obligations tied to the multibillion-rand public-private partnership (PPP) project.
Gauteng MEC for Finance and Economic Development, Lebogang Maile, confirmed during a recent media briefing that the rapid rail system will be formally handed over to the provincial government as a fully paid-up asset.
“On 28 March this year, the Gautrain will officially be handed over to the Gauteng government as its asset, meaning we have finished paying for Gautrain,” Maile said.
The high-speed rail network, which links Johannesburg, Pretoria, and OR Tambo International Airport, was initially constructed at a cost of approximately R26 billion under a PPP arrangement with the Bombela Consortium.
At the time, the project was one of the largest infrastructure investments undertaken by a provincial government in democratic South Africa.
Maile said the value of the asset has significantly appreciated over the concession period.
By the time the transfer is finalised, the Gautrain’s estimated value is expected to range between R45 billion and R50 billion.
“When we built Gautrain, we spent around R26 billion. Today, as we speak, and by the time we receive the asset, it is worth anything between R45 billion and R50 billion as an asset of the Gauteng government. That demonstrates the power of the PPP model,” he said.
The conclusion of the concession agreement paves the way for a new operational phase.
Maile indicated that the provincial government is at an advanced stage in appointing a preferred bidder for the next concession period, which will govern the system’s operations in the coming years. An official announcement is expected before the end of March, likely through the Office of the Premier.
He described the Gautrain as one of the country’s most successful PPP projects, arguing that its financial growth and operational stability provide a template for other public service interventions.
“We are happy that Gautrain is one of the PPPs that have been successful. It demonstrates that if we look at programmes such as scholar transport and implement them using that model, we can achieve a great deal,” Maile said.
He pointed to mounting pressures on Gauteng’s public infrastructure, particularly in education, noting that the province continues to experience rapid population growth. According to Maile, demand for scholar transport and school infrastructure continues to rise annually, placing a strain on the provincial budget.
“We have a budget, but it will never be enough, because every year more children are coming to Gauteng. We need to build more than 100 schools in the province,” he said.
The transfer of the Gautrain as a fully owned provincial asset is expected to strengthen Gauteng’s balance sheet while also shaping the next phase of transport planning and infrastructure expansion in the country’s economic hub.
anita.nkonki@inl.co.za
Saturday Star