Mobility

(a) What are the specific changes to the national Public Transport Network Grant allocations for the Province, (b) how do these changes differ from previous allocations to the Province,

The Public Transport Network Grant (PTNG) is a municipal grant rather than a provincial grant. However, as the Province is the joint contracting authority for the George Integrated Public Transport Network (GIPTN), the response below explains the likely implications for GIPTN. The MyCiTi bus service, which is managed independently by the City of Cape Town, is not covered in this response.

National policy position
The National Department of Transport (NDoT) has indicated that it intends to phase down the PTNG, citing concerns about the affordability and performance of underperforming bus systems nationally.

Historical and current allocations
Historically, George Municipality has received a base PTNG allocation of between R140 million and R180 million to support capital expenditure and indirect operational costs related to the Go George bus service, which is delivered through a partnership between the Province and George Municipality. The current Medium-Term Expenditure Framework (MTEF) allocations remain broadly stable:

• 2026/27 FY: R184 million
• 2027/28 FY: R177 million
• 2028/29 FY: R180 million

In addition to the base allocation, GIPTN previously benefited from a significant incentive component as one of the few strong-performing PTNG recipients, with Cape Town being the other main beneficiary. As this incentive component is being withdrawn during the wind-down period, George’s future allocation is likely to be lower than in previous years, particularly if no adjustment funding is provided.

NDoT has acknowledged that well-performing existing operational systems, including the Go George bus service, should be protected. The Department is therefore engaging with the national department to help ensure that the service can continue operating at an optimal level.

(c) how will these changes affect the continuation of existing public transport projects in the province,

Overall impact
No material impact on existing operational services is anticipated during the current MTEF period.

Proposed funding reform
From the 2029/30 financial year, funding is proposed to transition to a new consolidated Public Transport Fund. NDoT has circulated draft proposals indicating an intention to consolidate the PTNG, PTOG and Taxi Recapitalisation Programme (TRP) into a single funding mechanism, with a stronger focus on operational performance. The proposed reforms also place greater emphasis on improving existing public transport services, with the reform and de-risking of the minibus taxi industry identified as a priority.

Implications for Go George
The Province will be required to apply for funding under the proposed new fund to support the continuation of Go George services. Given NDoT’s stated commitment to protecting high-performing operational systems, no material disruption is anticipated, subject to the finalisation of the new fund’s allocation framework.

Department position
The Department views several aspects of the proposed reforms positively, particularly the opportunity to strengthen existing public transport and minibus taxi services. At the same time, it has emphasised that funding certainty remains critical for contractual commitments and intergovernmental agreements. The Department has also highlighted the need for continued capital investment in operational systems such as Go George, including fleet replacement, depot infrastructure, road rehabilitation and technology systems, to ensure long-term sustainability.

(d) What measures will his Department implement to mitigate any negative financial impact in order to ensure the continued delivery of (i) existing public transport projects and (ii) future public transport projects?

Current engagement and mitigation approach
The Department is actively engaging with the National Department of Transport (NDoT), in consultation with the City of Cape Town and George Municipality, through the ongoing process relating to the PTNG transition and the development of the new Public Transport Fund.

Key measures to protect existing services
The Department has emphasised that the reform process should:

• Protect existing high-performing operational systems;
• Provide funding certainty to support contractual commitments and intergovernmental agreements;
• Recognise the need for capital investment to support operational services including road rehabilitation, fleet procurement and depot facilities; and
• Allow for phased and practical transition arrangements.

Support for future public transport projects
The proposed Public Transport Fund is expected to provide support for a broader range of interventions. This aligns with the Department’s strategic objectives and supports the phased improvement, safety enhancement and operational formalisation of existing minibus taxi services. Other areas identified for future collaboration and potential funding include rural transport improvements, such as the Inter-Rural Transport Service (IRTS) pilot with Beaufort West Municipality, as well as scholar transport modernisation initiatives being developed in partnership with the Western Cape Education Department.

(e) What engagement has his Department had with the national government regarding the implementation of these funding changes?

Coordinated provincial engagement
The Department has worked closely with the City of Cape Town to develop a coordinated provincial response to the National Department of Transport’s (NDoT) proposals. This engagement has focused on identifying both areas of support and key concerns. The consolidated provincial response was presented during recent national engagements convened by NDoT with provinces and municipalities.

George-specific submissions and technical input
The Department, together with George Municipality, prepared and submitted a joint response on the implications of the proposed reforms for the George Integrated Public Transport Network (GIPTN). In parallel, the Department submitted a separate, detailed technical comment on the draft Public Transport Plan. The Department has stressed the importance of continued intergovernmental engagement as the detailed design of the new Public Transport Fund and the associated transition arrangements are refined.

Forward planning under the proposed fund
The Department is preparing a joint implementation and funding proposal with the City of Cape Town to position the Western Cape for support under the proposed new funding framework. The initial focus is on minibus taxi reform initiatives, while also laying the groundwork for broader future support under the new fund.