By Lehlohonolo Lehana.
Gautrain Management Agency (GMA) have confirmed that the Gautrain system will continue to operate under the Public-Private Partnership (PPP) model as it advances into the next phase of its operational journey.
As the current concession agreement approaches its conclusion, both Gauteng Department of Roads and Transport and GMA, have noted that the process of appointing a new private partner to operate, maintain, refurbish, upgrade and modernise the Gautrain system for the next 15 years is at an advanced stage of negotiation.
The Gautrain Rapid Rail Link was developed and implemented as a PPP in terms of Treasury Regulation 16 of the Public Finance Management Act (PFMA).
The Gauteng provincial government (GPG) is the public partner and primary promoter of the project.
MEC of Finance and Economic Development Lebogang Maile, who tabled the Gauteng province 2026 budget at the Gauteng Provincial Legislature on Sunday, said Gautrain will officially be handed over to the Gauteng government as its asset at the end of March after concluding all its repayments to Bombela Concession Company (BCC).
The Gautrain provincial government appointed the BCC, in 2006 to design, build, operate, maintain and partially finance the Gautrain project.
The concession agreement between the GPG and BCC will come to an end on March 27.
As one of South Africa’s largest and most successful PPP projects, the parties note that the Gautrain will continue operating under the PPP model beyond this date, ensuring stability, continuity and sustained private-sector participation.
They note that, by March 27, the costs associated with establishing the Gautrain project will have been fully paid off. “This important step positions the post-2026 Gautrain project to realise enhanced economic and operational benefits for the province and its residents.”
The Gautrain, a State-owned asset, is valued at about R45-billion. They note that the preferred bidder has been identified for the new concession agreement.
The PPP model remains central to Gautrain’s operational framework.
In his recent National Budget Speech, Finance Minister Enoch Godongwana emphasised that public institutions should increasingly consider PPPs as a viable alternative model for delivery.
“As we transition into the post-2026 phase, our priority is to safeguard service continuity, strengthen private-sector participation, and ensure that the Gautrain continues to contribute meaningfully to economic growth, job creation and improved mobility for all residents of Gauteng,” said the Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela.