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Prasa unveils supplier for fleet renewal

Prasa CEO Lucky Montana said the best company was awarded the R51 billion tender.

Prasa CEO Lucky Montana said the best company was awarded the R51billion for building new trains.

JOHANNESBURG - The Passenger Rail Agency of South Africa (Prasa) awarded French company Alstom SA the bid for new trains because it offered a better deal, CEO Lucky Montana said on Wednesday.

He made the comments while speaking to Talk Radio 702/567 Cape Talk's Bruce Whitfield.

This is the biggest contract ever awarded by South Africa.

Other countries that were bidding for the deal were China, Spain and France.

Montana said Alstom was chosen because it will provide value for money.

"Gibela Consortium (which is led by Alstom SA) won the right to our new generation and modern fleet, which will serve for the country for the next 40 years at least.

"They offered us a good price. It will include energy efficiency and they have the best technology."

Montana said they wanted to use the landmark deal to revatalise the rail industry.

"It will create jobs and develop youth skills. This is a proud moment for South Africa."

Montana said the funds for the project will come from the national fiscus.

"National Treasury has already committed to giving us R40 billion over the next 10 years. So we will be talking to them about the R11 billion difference."