SANRAL awards USD 590 million worth of tenders

SANRAL has announced that four of the five tenders cancelled in June have now been awarded.

South Africa’s National Roads Agency SOC Limited (SANRAL) has announced that four of the five tenders cancelled in June 2022 have been awarded following an evaluation process by the Development Bank of Southern Africa (DBSA). The tenders are worth USD 590 million (ZAR10,655 billion).

The following awards have been made:

1. Mtentu Bridge: R3.428 billion – to CCCC MECSA JV
2. R56 Matatiele rehabilitation: R1.057 billion – to Down Touch Investments
3. Ashburton Interchange: R1.814 billion – to Base Major/CSCEC JV
4. EB Cloete Interchange Improvements: R4.302 billion – to Base Major/CSCEC JV

“Speedily” resolved

“We wish to express our sincere thanks to the DBSA for undertaking the evaluation and adjudication of the tenders and indeed for the speedy manner in which the process was resolved. We are also deeply grateful to the industry for their patience in resubmitting tenders for these contracts and waiting for the adjudication process to be concluded,” said Themba Mhambi, SANRAL Board Chairperson.

When the tenders were cancelled there was understandably a concern by the Executive on the impact this would have on the country’s infrastructure development agenda, Mhambi said. “We accordingly undertook to both President Cyril Ramaphosa and Transport Minister Fikile Mbalula that we would do everything possible to ensure that we mitigate the impact on the construction industry and the economy.”

This meant re-advertising, evaluating and awarding the tenders within four months after they were cancelled. “We are happy that we have lived up to that commitment and in the process learnt valuable lessons about how to handle tenders with speed to keep the country’s economic development on the boil,” said Mhambi.

Prioritizing infrastructure

SANRAL will continue to prioritize infrastructure development to drive South Africa’s economic recovery. While this process has delayed the implementation of critical infrastructure upgrades, it has to be balanced against healthy governance and the need to ensure compliance with all relevant procurement and legal prescripts when SANRAL awards any and all tenders going forward.

“Our congratulations go out to the successful bidders, and we look forward to seeing the true impact of these projects in the lives of the road users and communities we serve,” said Mhambi.