The South African National Roads Agency SOC Limited (SANRAL) has this week awarded four major construction tenders, collectively worth nearly R7 billion, for projects in KwaZulu-Natal and the Eastern Cape.
These awards will help boost the construction sector and should be seen as part of the broader national effort by the government to invest in economic infrastructure, says the roads agency.
In line with SANRAL’s commitment to the economic development of black businesses, at least 30% of the contract value of each tender will be subcontracted to small, medium and micro enterprises (SMMEs).
In the Eastern Cape, the construction of the N2 Wild Coast Highway from Msikaba Bridge to Mtentu Bridge was awarded to WBHO H&I JV at a cost of R2 545 887 375. On this 54-month project, which includes three months of site mobilisation, no less than 35% will be subcontracted to black-owned SMMEs, squarely exceeding SANRAL’s transformation targets.
The rehabilitation of the N2 from Mt Frere to Ngcweleni River was awarded to Rumdel Construction Cape (Pty) Ltd at a cost of R1 202 448 588. This 45-month contract will see SMMEs benefit to the tune of 30% from subcontracting.
Still, in the Eastern Cape, the construction of the N2 Wild Coast Highway from Lingeni Intersection to Msikaba Bridge was awarded to WBHO-Edwin Construction JV. With a contract value of R2 296 695 921 this project, which spans 45 months, will see SMME project participation coming in at 35%, again exceeding SANRAL’s transformation targets.
In KZN, the upgrade of the N11 from the N11/R103 Interchange to Elandslaagte, with a contract value of R864 888 000, was awarded to Raubex Construction (Pty) Ltd. The contract, which will span 39 months, will see more than R250 million (30%) subcontracted to SMMEs.
Over and above the substantial subcontracting which is collectively worth R2.1 billion, these projects are a platform for large-scale job creation, skills development, knowledge transfer and poverty relief, especially in the rural communities of South Africa. The significantly long construction periods afford sustained economic opportunities for these communities. If the SANRAL separately funded community development projects are factored into the equation, the number of SMME opportunities as well as training and job opportunities for ordinary members of our communities significantly increases, thus tangibly reducing unemployment, inequality and poverty, says the Board of SANRAL.
“While we are alive to the cries from our industry for more projects to be put out to tender, we are equally committed to fair and transparent procurement processes, as required by law, but also the need to prioritise the economic development of those previously denied opportunities to SANRAL projects. We also have to respond to the need, as admonished by the Constitution, to advance persons or categories of persons disadvantaged by unfair discrimination. Moving forward, striking a balance between safeguarding our big and established companies and creating opportunities for black businesses at higher and lower CIDB grades will be a material deliverable within SANRAL,” said SANRAL Board Chairperson, Mr Themba Mhambi.
Stakeholder engagement sessions will also be prioritised in the affected communities to ensure that local businesses and job-seekers have access to relevant information that will enable them to pursue and participate in the economic opportunities flowing from these tender awards and projects. Through the establishment of Project Liaison Committees (PLCs), we will also ensure fairness and transparency in all the appointments of subcontractors and the engagement of local labour.
“We want to see the meaningful transformation that truly changes people’s lives for the better and not simply impressive statistics,” said Mhambi.
