PRASA empowers its own!

The agency says the multibillion deal -would for the first time -see staff and black people having a large chunk of stake in the deal reported to run for 20 year’s of which the government has budgeted R40bn for the first phase for the project estimated to take five year’s.

Setting the precedent, Group Chief Executive Officer Lucky Montana at Prasa, warned that the deal is for companies already in rail business only.

“Participants are by companies that are in the rail business and will play a role in the upgrade and who are familiar with the industry.”

The breakdown would comprise: Black enterprises will receive 33%, black investor enterprises 24%, employees 33% and an educational trust 10% of the deal.

“The total empowerment stake will be composed of 30% of the whole deal. The remaining 70% equity will go to a preferred bidder, which is a large company,” continued Montana, who went on point out that State-owned financiers National Empowerment Fund and Industrial Development Corporation will both create facilities to fund passive participants and active participants.

“The Prasa executive management and board will not benefit from the deal,” he warned.

This means that companies involved in this deal will only receive dividends after three years, he said.

The tender document will be available for R5000, says Prasa head of procurement Piet Sebola.

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