Gauteng SDI Rail Link - Gautrain

38For this purpose, the benefits (even the value of life and travel timesavings) have to be quantified and put into monetary terms in order tocompare these with the project costs. In addition, the future value ofmoney must be determined in order to compare future benefits withcurrent construction costs. This is calculated by discounting the futurecosts and calculating nett present values. Taxes and subsidies areignored (as these entail cross allocations within the community beingconsidered which are not applicable for economic feasibility assessments).• Financial ViabilityFinancial analysis concerns the financial position of a person, ororganisation, so that both cost and benefits are measured in terms ofmoney spent or received, regardless of whether the prices are a goodreflection of true value. This kind of analysis includes taxes and subsidies.For this project financial analysis should be done for:- The Operating Company / BOT Concessionaire, who will invest,maintain, operate and manage the rail transport system. This analysisis largely related to the bankability of the project, which is veryimportant to ensure private sector interest and competition in thetender process.- Government (Gauteng Provincial Government and the TransportAuthorities) who will be responsible for some investment, and possiblesubsidy, burdens.- The passengers using the system, who will decide whether or not touse the proposed system.• Socio-political acceptabilityThis measure of feasibility considers the acceptability of the project by theaffected communities. It would include aspects such as whether or not theproject meets government objectives and goals. These could includegoals such as job-creation, transformation, and creating opportunities forSMMEsGauteng SDI Rail Link – Inception Report, 15 June 2000