Calls for Expression of Interest by suitably qualified Financial Institutions
regarding purchase and on-leasing of MyCiTi vehicles.
The City of Cape Town (hereafter ‘the City’) is seeking Expressions of Interest from suitably qualified
financial institutions which may wish to tender to participate in the purchase and on- leasing of
vehicles to be used in the new MyCiTi public transport system.
The purpose of the Expression of Interest process is to



disseminate information to interested financial institutions;
garner feedback from interested financial institutions (that may be possible tenderers in the
future processes) on the proposed transactions prior to a tender being issued
invite interested parties to a pre-tender meeting at the Cape Town Civic Centre, Meeting
Room 2, 6th floor, Podium Block on 21 October 2010 from 11:00 – 14:00.
This expression of interest and, at a later stage the tender, will only be open to financial institutions
which qualify in terms of Local Government legislation, being South African registered financial
institutions and the City’s investment standard of A1- or better and F1- or better ratings.
Expressions of Interest are invited only from such institutions.
Background
The City is in the process of designing and implementing a new public transport system, referred to
as MyCiTi, the first component of which is a ‘bus rapid transit’ system. Details of the system are
available in documents published on the City’s website, including, in particular the Business Plan.
(Documents can be accessed via the City’s website by clicking here [hyperlink to
http://www.capetown.gov.za/en/irt/Pages/MyCiTiIRTPPP.aspx] or at www.capetown.gov.za/en/irt click on “Public participation”)
Elements of the system were implemented in order to meet the City’s FIFA World Cup obligations,
with some vehicles and infrastructure being used subsequently to provide a limited service between
the airport and city centre, and within the central city area. The starter phase, which will entail
operating vehicles between the central city area and Bayside using dedicated roadways, is expected
to commence during February / March 2011, and further elements will be implemented over
subsequent months and years.
The envisaged transaction
The City has already purchased 43 vehicles from grants received from national government, and is
using them to provide a limited range of public transport services. However, it wishes to sell those
vehicles to a financial institution which will then lease them to private sector operators contracted
by the City to run MyCiTi vehicle operations. The City intends to invest the proceeds of the sale in
the same financial institution both as security for the vehicles and as a source from which to pay the
contracted vehicle operators so that they in turn can finance the lease. The proposed transaction
therefore carries very little risk for the successful tenderer.
While the current vehicles to be sold to the financial institutions for on-leasing to the vehicle
operators have already been used, the City intends to require the purchase of at least a further 267
vehicles in Phase 1A which could be on-sold for leasing to the designated vehicles operators prior to
being used. The City would like to include the transactions relating to the further vehicles in the
envisaged tender and is investigating how this can be done while complying with tender and other
statutory rules.
Information relating to the envisaged transactions
The Municipal Finance Management Act requires the City to publish specified information for public
comment when it wishes to implement a transaction of the nature envisaged here. This information
can be found in the following documents on the City website www.capetown.gov.za/en/irt.


Business Plan [hyperlink: http://www.capetown.gov.za/en/irt/Pages/Businessplan.aspx]
Public consultation regarding vehicle ownership and use [hyperlink to
http://www.capetown.gov.za/en/irt/Pages/InvToComntMyCiTiBusTtransfer.aspx]
o Information statement on proposed transactions to establish desired title holding
and use of MyCiTi buses [hyperlink to
http://www.capetown.gov.za/en/irt/Documents/33Proc/MyCitiInfoStatement_as
setTransferOfBuses100726Final.pdf]
o Information statement on proposed transfer of MyCiTi buses [Hyperlink to
http://www.capetown.gov.za/en/irt/Documents/33Proc/MyCitiInfoStatement_se
ction46-50MFMAv1_100826Final.pdf]
Process
The call for Expression of Interest is aimed at identifying a set of financial institutions potentially
interested in tendering to provide the services described, disseminating information to them and
receiving feedback prior to finalising the tender.
Parties complying with the requirements (i.e. banking/financial institutions registered in South
Africa, with a credit rating of A1 and F1) which are interested in participating should register such
interest with the City. Registered parties are invited to attend a meeting on 21 October 2010 at the
Cape Town Civic Centre, Meeting Room 2, 6th floor, Podium Block from 11:00 to 14:00 where
further details will be given. These details will include the content of envisaged legal contracts which
will form part of the tender, and the modelling upon which the City has based its envisaged course
of action. There will be an opportunity for parties to raise questions and make comments relating to
the envisaged transactions.
Please register interest in this opportunity by sending the name of the banking institution, including
the name and details of a contact person, to Nomikhosi.Kumalo@capetown.gov.za by 17:00 on
Tuesday 19 October 2010. Please also indicate how many people it is intended to send to the
information session on 21 October 2010, if any.
Any other queries may be directed to Louise Muller at 0843767169 or Dawie Bosch at 0825578597.