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Sanral awards contracts worth R1.6bn in the Eastern Cape

After reporting that it has R30bn of construction contracts ready to implement.
The identity of the contractors who have been awarded the contracts has not been disclosed. Image: Shutterstock

The SA National Roads Agency (Sanral) has awarded eight road maintenance, rehabilitation and resurfacing projects in the Eastern Cape worth a total of more than R1.6 billion to contractors.

The announcement of these contract awards follows Sanral reporting earlier this month that it was ready to implement R30 billion worth of construction projects that form part of President Cyril Ramaphosa’s drive for “shovel-ready” infrastructure development to stimulate the economy post Covid-19.

The projects Sanral has awarded are:

  • A R653 million contract for the rehabilitation of the road from the N2 Nqadu to Mbokotwana River and Dan’s Place.
  • A R542 million contract for the upgrading of the Fort Beaufort to Alice road.
  • A R220 million contract for special maintenance of 35.3km of the R56 Section 4 from the N6 to Dordrecht.
  • An R83 million phase two contract for special maintenance on the Jansenville to the R63 road.
  • A R65 million phase two contract for special maintenance on the Wolwefontein to Jansenville road.
  • A R44 million contract for the upgrading of the R67 from Swart Kei to Queenstown.
  • A R39 million contract for special maintenance of 18km of the national route R56 Section 3 from Molteno to Vlakfontein.
  • A R32 million contract for special maintenance of the road from Kareedouw to Section 10 Krom River.

The identity of the contractors who have been awarded these contracts was not disclosed by Sanral.

Sanral southern region manager Mbulelo Peterson said infrastructure development is key in the acceleration of economic activity and growth.

“As a roads authority mandated with road infrastructure service delivery, we are happy to be back in operation and rolling out work.

“These projects will be a crucial boost to economic activity in the province.

“They will present much-needed employment opportunities, more so now given the current economic decline due to Covid-19 and the lockdown,” he said.

Peterson added that small-, medium and micro enterprise (SMME) development and participation is an essential component on all Sanral projects and various work packages have therefore been reserved for targeted enterprises in all these projects.

He said training will also form part of SMME development.

Community benefits

Peterson said community benefits presented by the projects will include improved pedestrian and road safety, particularly in high traffic spots where learners commute daily on foot to and from school.

David Fraser, executive chair of Peregrine Capital, said on Sunday any contract award is incredibly welcome in the current economic environment, particularly in the Eastern Cape, which is desperately looking for investment and has been under pressure recently.

However, Fraser stressed that these contract awards only account for about 5.5% of the R30 billion of construction contracts Sanral indicated earlier this month it is ready to implement.

This is just the start

“We are looking forward to the continued momentum of these contract awards over the short term, which will definitely stimulate the economy.

“The real work is obviously the N3 projects, where there are five or six sections that are all worth over R1 billion each. We want to see those awards coming out as soon as possible,” he said.

Fraser said it is irrelevant who the contracts are awarded to provided they go to capable and competent contractors who will produce work at the required specifications.

“At the end of the day, it’s about job creation and the multiplier effect and material and other inputs that go into these contracts as well,” he said.

Rudolf Fourie, the chief executive of JSE-listed road building and maintenance focused company Raubex, said earlier this month the whole construction industry landscape will change if Sanral awards all of the R30 billion projects it is ready to implement.

Sanral Engineering Executive Louw Kannemeyer said at the time the road agency has, in the current financial year, advertised 278 maintenance, operations and construction projects worth about R30.2 billion and has so far awarded 136 projects to the value of R7.3 billion.

He added that Sanral also plans to roll out more than 200 additional road infrastructure projects across all nine provinces in the country, which will impact directly on economic development, job creation and economic transformation.

Speaking at the Sustainable Infrastructure Development Symposium in June, President Cyril Ramaphosa said the government has placed infrastructure at the centre of the stimulus South Africa’s economy needs to achieve a sustainable recovery.

The government last month unveiled 50 Strategic Infrastructure Projects (SIP) and 12 special projects involving a total investment of R360 billion as the first tranche of a massive infrastructure expenditure programme to drive the post Covid-19 economic recovery effort.

These initial SIP projects are expected to create an estimated 275 700 jobs in six sectors: water and sanitation, energy, transport, digital infrastructure, agriculture and agro-processing and human settlements.

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Spend program is mostly hype

This is like watching a series on Netflix

The producers (ANC) decide who the participants are, SANRAL which season, and the monthly subscription is our Tax

And the award goes to the ANC comrades who don’t have an idea what building a road means so they sub contract the work to a few groups owned by the minority class..of course after the tender was inflated

And we all live happily ever after in a rat hole of corruption and filth

Incorrect heading, should be “Sanral will spend R20 billion on road contracts”. ( we know once the tenders have been manipulated that costs will increase tenfold )

The Eastern Cape is traditionally where the ANC can count on support. They have to do something to throw a bone to their supporters here. One wonders whether these contracts will be properly executed once awarded or will they be similar to the road near Maclear which has taken about 5 years to be repaired. Once the repairs were done they had to start over because of the poor quality…

The Eastern Cape is also where the construction mafia was the cause of SANRAL contracts being abandoned.

SANRAL and the corrupt ANC government then says it is the contractors problem to deal with the construction mafia.

I ASK YOU??????

Thieves.

5 to 10 years of workers leaning on shovels and disrupting traffic. The out of the way places will be ideal hijack and robbery points. As mentioned as they finish they start again fixing the inferior work.

True,
And no attempt to get the chickens, horses cows and bucks off ghe notorious N2?

Facinating that the collective there doesnt think that to be a serious problem..

‘The identity of the contractors who have been awarded these contracts was not disclosed by Sanral’

Why not?

How much for corruption?

Accurate Estimates put the figure at 20% of all public procurement however i believe it is much higher.

Plus the 21% corporate tax rate and the fact that the contractor will be paid late meaning the bank will take its interest from the loan the company had to take, you end up with a contractor squeezing 5% profit when he could have just invested in government bonds and gain access to an interest rate of +9% without any risk.

Its not worth doing business.

You could not be more correct. Worth mentioning all the interest on capital getting past the red tape and you end up just working to pay salaries and the bank. Industry is in serious trouble unless you partake in paying african tax. Closed my business in June 186 people out of job. I prefer to enjoy my free time getting bankrupt rather than work myself bankrupt

In summary a bigger shot of transparency required, no good discovering after the event that the successful bids were all family Cadre linked
How about a piece on the current status and future plans for the N2 extension where the large bridge contracts were abandoned due to Construction Mafia intervention ?

Government MUST disclose who won the tenders…..not only to be transparent whilst we try to rebuild our economy but also if the ANC says safety of the workers from the Construction Mafia is the Construction Companies responsibility then they must tell us who those companies are.
Transparency is the key going forward….

“The identity of the contractors who have been awarded these contracts was not disclosed by Sanral.”
It’s public funds, so why can the public not know?

And … “At the end of the day, it’s about job creation and the multiplier effect and material and other inputs that go into these contracts as well.” Really? I would have thought it’s about bringing the infrastructure up to a level where business can operate productively and efficiently so that SA can compete in the international markets.

Here in Noordhoek Cape Town it took five years to restructure an intersection and widen roads which would have taken the Chinese (bless them) six months.

As tax payers we should be demanding that all public procurement tenders be placed in the open and live for viewing by everyone.

As tax payers we are very weak, we pay these guys fortunes of money and ask little in return, COME ON YOU PANSIES Start Demanding and demonstrating like everyone else and GET YOU BUCKS WORTH!

Awarded to whom. Are we going to see who got these contracts?

End of comments.

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