South Africa would pick a preferred bidder in early May to build a R7 billion high-speed train service between Johannesburg and Pretoria, one of the biggest investments planned for the 2010 soccer World Cup, officials said yesterday.

In 2002 the Gauteng provincial government shortlisted two consortiums, led respectively by the world's top passenger train maker, Bombardier of Canada, and Spanish transport company CAF.

"We expect the preferred bidder for the project to be announced at the beginning of May," said Barbara Jensen, a spokesperson for the Gautrain Rapid Rail Link.

Work on the 80km link will start late this year and is expected to help revive the civil engineering sector, which contracted 6 percent in real terms in 2004, and ease congestion on Gauteng's roads.

The project has been approved by the national treasury, which will contribute about R4.4 billion. The Gauteng government will help fund the project, which is expected to be fully operational by 2009.

The Bombela consortium, led by Bombardier, includes Murray & Roberts and French companies Bouygues Travaux Public and RAPT International. The CAF-led Gauliwe team is backed by Grinaker/LTA, Spanish civil contractor Dragados Concesiones and rail operator Metro de Madrid.

Construction is expected to create more than 43 000 jobs, with a further 41 000 jobs to be created through secondary activities.

Brait economist Colen Garrow estimated the project would add R2.6 billion to gross domestic product annually.

Source: Business Report

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