Passenger Rail Agency of South Africa (Prasa) is planning a R15 billion black economic empowerment programme as part of plans to modernise Metrorail's fleet of commuter coaches, Business Day has reported.
The proposed BEE deal would rank among the top five empowerment deals ever concluded.
According to the report, Prasa CEO Lucky Montana told a meeting of the agency's top 300 managers that there was no turning back on the R123 billion programme to buy modern train technology and locally manufacture commuter coaches.
"No one can reverse what we have started. Any attempt to undo what we have started would cause a collapse of the commuter rail system," Mr Montana said, commenting on attempts by "some rolling stock manufacturers and some people in the black business environment, not necessarily the BBC (Black Business Council)", to delay the implementation of the programme.
Prasa told the newspaper that a minimum of 30 percent equity for black investors would be required for a project company that would be established to manufacture the coaches in South Africa.
The report said more details would be released on September 25.
Copyright is owned by Africa Outlook and/or Outlook Publishing. All rights reserved.