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MEDIA RELEASE

CONCESSIONAIRES REMINDED TO PRIORITISE SMMES IN RURAL COMMUNITIES

KwaZulu-Natal, 27 October 2021 – The South African National Roads Agency SOC Limited (SANRAL) expects economic transformation for rural communities even on concessionaire contracts that date back to 1998. As a result, SANRAL continues to work closely with N3TC to prioritise project participation for black businesses in the Inkosi Langalibalele Local Municipality.

SANRAL has a 30-year partnership with N3TC, the concessionaire responsible for managing and maintaining a 415km section of the N3 transport corridor known as the N3 Toll Route.

“It is a reality that as government, we cannot attend to all the needs of our people on our own. For that reason, we cooperate, collaborate, engage and forge partnerships with both the public and private sector, to ensure more effective and efficient service delivery – we call this Public Private Partnerships (PPPs),” said Deputy Minister of Transport, Ms Sindisiwe Chikunga, when she addressed stakeholders during a Taking SANRAL to the People engagement in Loskop in the iNnkosi Langalibalele Local Municipality yesterday.

SANRAL’s Transformation Policy and government’s Preferential Procurement Regulation dictates that a minimum of 30% of the contract value of all projects must be subcontracted to targeted enterprises, in a bid to prioritise economic development opportunities for black-owned entities.

“We hold our concessionaires accountable with regards to our transformation objectives and we will continue to work closely with them to ensure meaningful economic transformation that changes people lives,” said Mr Themba Mhambi, SANRAL Board Chairperson. In this case, the concessionaire had in the previous financial year, directed investment to the tune of R303 million to SMMEs, while 538 jobs were created. No less than 90% of their routine road maintenance (RRM) packages were subcontracted to black-owned SMMEs.

In the iNkosi Langalibalele Local Municipality, there is one rehabilitation project underway between the Midway and Frere Interchanges. The 15-month project, valued at nearly R180 million, started in October 2020 and is scheduled to be completed in December 2021.

Just under R70 million of the project value (nearly 40%) went to black-owned enterprises, with more than R11 million being set aside for youth-owned businesses.

There are 239 persons currently directly employed on site of which 122 are from the iNkosi Langalibalele Local Municipality. The RRM activities have also yielded 35 jobs in this municipality.

Following a pre-qualification and tender process earlier this year, RRM contracts will be awarded during November 2021. One SMME will be awarded a routine road maintenance contract in the iNkosi Langalibalele area, with a project value of approximately R4 million per year. The contracts are to be awarded for a two-year period, with the option to extend.

With public sector infrastructure development spearheading South Africa’s economic recovery post COVID-19, SANRAL has been prioritising economic opportunities for emerging black businesses on all its projects.

Since the start of this financial year in April, SANRAL has already awarded contracts to nearly 1 000 black-owned SMMEs and created over 13 000 job opportunities on projects across South Africa.

“Furthermore, we are committed to not only award contracts to SMMEs, but through our various MOUs with captains of industry, we will ensure training, mentoring and development of SMMEs to capacitate them with knowledge and skills that will allow them to grow, develop and prosper,” said Dumisani Nkabinde, SANRAL Eastern Region Manager.

Stakeholders in attendance included iNkosi MPM Mazibuko, iNkosi Langalibalele, iNkosi yamaHlubi, nomkhandlu weMangwebuthanani Traditional Council, uThukela District Municipality Mayor, Cllr Alfred Siphiwe Mazibuko, iNkosi Langalibalele Local Municipality Mayor, Cllr Jabulile Membrey Mbhele and several SMMEs from the local business community.

“These stakeholder engagement sessions are important to ensure we stay connected to the people our roads are built for. We welcome robust debate, meaningful contribution and an inclusive project participation process to ensure we collectively build South Africa through better roads,” concluded Nkabinde.

Pretoria, 27 October 2021 – The South African National Roads Agency SOC Limited (SANRAL) has noted with concern allegations made by the Democratic Alliance (DA), to the effect that SANRAL’s City Power electricity account is in arrears.

SANRAL wishes to state that the allegations made by the DA are untrue.

SANRAL currently holds multiple accounts with the City Power, billed through the City of Johannesburg. Occasionally, discrepancies are encountered within our multiple accounts. This means that at times certain infrastructure accounts will be in credit or debit due to the municipal verification processes and billing cycles. Such discrepancies are continuously monitored, managed and resolved as the need arises.

SANRAL is in constant communication with City Power and has never failed to honour its responsibilities towards the entity.

As a responsible state-owned entity, SANRAL subscribes to the Public Finance Management Act (PFMA), and all outstanding accounts are therefore managed within the framework of the Act.

SANRAL has ensured and will continue to ensure that the funds allocated to it by government and received from those road users that are paying their e-toll accounts, are spent in a responsible manner, as prescribed by the PFMA.

MEDIA RELEASE

SANRAL TO UPGRADE RURAL ROADS IN NQUTHU

KwaZulu-Natal, 24 October 2021 – The South African National Roads Agency SOC Limited (SANRAL) is upgrading nine gravel roads to surfaced roads in Isandlwana, at a cost of R180 million. SANRAL’s move to extend its reach beyond the national road network to rural roads follows a request from the late King Goodwill Zwelithini in 2019, when a formal agreement was reached that, among others, the gravel road leading to the Isandlwana Battlefield would be upgraded.

Since then, aMangwebuthanani Traditional Council, under the leadership of inkosi yesizwe, iNkosi Mazibuko, has hosted various engagements with SANRAL and has provided guidance as the groundwork for the project unfolded.

The design phase of the project is 80% complete and construction is expected to begin in 2022. In line with SANRAL’s Transformation Policy and government’s Preferential Procurement Regulation, at least R54 million of the R180 million project will be subcontracted to targeted enterprises, in a bid to prioritise economic development opportunities for black-owned entities. Of this R54 million, at least R2.7 million will be ringfenced for women-owned businesses and youth-owned businesses respectively.

“For too long, women have been marginalised, particularly in the infrastructure development space. But we are saying, NO MORE! Similarly, our youth are becoming despondent, given the high unemployment rate. We are saying, ENOUGH IS ENOUGH! We encourage young people to start small businesses and we commit to creating opportunities that would allow them to prosper. Women and youth, your time is now”. This was the message that the Deputy Minister of Transport, Ms Sindisiwe Chikunga delivered during her keynote address at SANRAL’s stakeholder engagement session in the Nquthu Local Municipality on Saturday 23 October 2021.

“We understand that not everyone is an entrepreneur and to this end, the project will also create 150 job opportunities, at a cost of R14 million, for persons to be directly employed on site. Again, jobs for women and youth will be prioritised, with more than R8 million – the lion’s share of the wage bill – being earmarked for wages in these two groups”, Chikunga added.

With public sector infrastructure development spearheading South Africa’s economic recovery post COVID-19, SANRAL has been prioritising economic opportunities for emerging black businesses on all its projects.

“Since the start of this financial year in April, SANRAL has already awarded contracts to nearly 1000 black-owned SMMEs and created over 13 000 job opportunities on projects across South Africa. Furthermore, we recognise the importance of developing rural roads that will give remote communities access to central business districts and ultimately link them to economic opportunities on the national road network,” said Dumisani Nkabinde, SANRAL Eastern Region Manager.

Stakeholders at the event included Inkosi MPM Mazibuko, nomkhandlu waMangwebuthanani Traditional Council, Nquthu Local Municipality Mayor, Cllr Zama Shabalala and several SMMEs from the local business community.

“The construction of the Isandlwana project must never be interrupted in any way. People are called here by SANRAL to be informed on how they can be involved in this project and how they can benefit economically. I do not want to see those opposing progress sending the wrong message or attempting to derail progress,” iNkosi Mazibuko said.

SANRAL remains committed to breaking down monopolies in the supply chain of materials, equipment, technologies, systems and other areas, to ensure broad-based participation by black South Africans. This goes beyond access to economic opportunities, to the training and capacity building that will allow particularly 1CE and 2CE subcontractors to successfully compete for contracts.

“In delivering on our mandate to finance, improve, manage and maintain South Africa’s expanding national road network, we want to ensure we leave behind legacies of economic empowerment in communities that will allow us to improve the lives of our people, way beyond the construction period,” concluded Nkabinde.

Eastern Cape, 24 October 2021 – The South African National Roads Agency SOC Limited (SANRAL) notes with disappointment the electioneering stunt by the Democratic Alliance (DA). In their attempt to garner votes, the DA made a misleading comparison between the R62/Langkloof Road in the Western Cape and the Eastern Cape provincial boundary.

“Comparing the road surface at the boundary point, without context or accurate content, is mischievous and ill-informed at best, but disingenuous and malicious at worst. Creating the impression that the Western Cape Government delivers good roads while SANRAL ignores its road safety engineering mandate is simply devoid of any truth. On the contrary, the International Road Federation (IRF) in 2020 officially recognised SANRAL’s road safety engineering efforts when it bestowed on the agency the 2020 IRF ‘Find a Way’ Global Road Safety Award.

“Furthermore, the deliberate distortion that the colouration of the seal depicts poor or good quality roads must also be rejected. This simply speaks to the colour of the aggregate and the material used. The DA would do well to not make everything about colour,” said Mbulelo Peterson, SANRAL Southern Region Manager.

While the R62 is largely a provincial road, the Eastern Cape section was transferred to SANRAL by the provincial government in 2012. Taking into account the primary mandate of developing and maintaining the national road network, as well as the available budget, SANRAL took a decision to start the upgrade and rehabilitation of the R62 from the Humansdorp side, working towards the Western Cape Border.

SANRAL completed the first 33km of the upgrade in 2018, at a cost of R98 million and provided economic opportunities for 22 SMMEs (20 grade 1 CE, 1 Grade 3 CE and 1 grade 5 CE), with a wage bill of R9 059 207.12 for local labour. The works involved milling out of sections of the pavement layers, widening the road and then applying an appropriate seal. Guard rails and signage installation also formed part of the scope of works.

There are three more sections that are due to be resealed. Two of the three sections are in design stage and implementation of these projects are scheduled as follows:

• R62 Section 6 from the WC/EC Boundary to Louterwater – the construction tender will be advertised by June 2022
• R62 Section 7 from Joubertina to Kareedouw – the construction tender will be advertised by March 2023
• R62 Section 6 from Louterwater to Joubertina – the construction tender will be advertised by September 2023

The implementation of these projects is staggered to minimise the inconvenience to road users as a result of traffic accommodation imperatives.

Since the start of the financial year in April, SANRAL has created economic opportunities for nearly1 000 SMMEs in the road construction sector across South Africa where our national roads are located, despite the COVID-19 constraints. Furthermore, in the last six months alone, SANRAL has created 13 293 job opportunities on projects across South Africa, on the national road network.

“SANRAL remains at the forefront of public sector infrastructure upgrades in South Africa’s economic recovery plan post COVID. We take our mandate to develop, finance and maintain the national road network very seriously and will continue to build South Africa through better roads,” concluded Peterson.

The contract of the current CEO of SANRAL ends on 30 November 2021. The CEO has requested a leave of absence from 17 November 2021 to 30 November 2021, which the SANRAL Board has duly granted.

To address the gap emanating therefrom, the Board of SANRAL has appointed Ms Lehlohonolo Pitse, the company’s current Chief Audit Executive, as the Acting CEO of SANRAL with effect from 17 November 2021 until the commencement of duty by a new CEO. The Board is at an advanced stage of the recruitment process for the CEO of SANRAL. Once a suitable candidate has been identified, the name shall be recommended to the Minister of Transport, who is the shareholder representative of SANRAL, for his approval.

SANRAL is grateful to Mr Macozoma for his sterling operational stewardship of the organisation over the past five years. The Board, the Management and the staff of SANRAL are committed to maintaining the high operational and governance standards this organisation is respected for

North West, October 18, 2021: The South African National Roads Agency SOC Limited (SANRAL) has informed the community of Zeerust, in the North West province, of a R53 million routine road maintenance (RMM) project, of which more than 30 per cent will go towards local subcontractors.

SANRAL made this announcement at a recent Taking SANRAL to the People engagement in Zeerust. The event was held in line with SANRAL’s fourth pillar of stakeholder relations, which requires that the roads agency engages communities on matters that affect them.

The objective of the community engagement was to share details on Vision 2030 and the Transformation Policy aimed at achieving economic development, and inclusivity.

The RRM planned for the R49 sections 1 and 2, with a total of 110.5km in Zeerust, North West, will include a much-needed clean-up of the road reserve, as a part of the general maintenance, vegetation control, pavement repairs and traffic accommodation.

SANRAL’s Northern Region Stakeholder Coordinator, Jullecsia Saul, said emphasised the importance of empowering women, children and persons living with disabilities.

Saul also highlighted the need for more consultation in job creation: “This project has afforded local small, medium, and micro enterprises (SMMEs) the opportunity to understand SANRAL’s tendering process, which contribute to the Zeerust community through job creation. We are also here to address concerns raised about the current ongoing projects; such is the significance of this information sharing session.

Taking SANRAL to the People was created as a solution to the growing need of communities to have access to SANRAL, because of how far the head offices are situated,” Saul added.

Northern Region Project Manager, Miss Karabo Otloa, discussed the upcoming SANRAL project in greater detail.

“The R49 starts at the Mahikeng municipal border and goes straight up to the Kopfontein border post with Botswana. The RRM project route is split into two sections. It started in November 2020 and will continue until October 2023. The project value is R53 million, and it will run for 36 months. The main contractor is Vea Roads Maintenance & Civil. We have expensive roads that need rehabilitation through consistent upgrading and maintenance, and this is where the RRM division comes in.”

“We also subcontract a portion of the maintenance work. The National Treasury has requested that all state-owned entities (SOEs) subcontract 30% of the work, and the percentage is also determined by the BEE level of the main contractor. In this project, we have subcontracted more than 30%.”

The Bakwena Platinum Corridor Concessionaire commercial manager, Solomon Kganyago, discussed Bakwena’s partnership with SANRAL.

“Bakwena has a public 30-year concession contract with SANRAL. We implement the policies SANRAL introduces because we work in the same communities. It becomes a collective responsibility towards the provision of safer roads. In return, Bakwena manages the tollgates, the nearest one being the Swartruggens tollgate. It also benefits us to match the amount of work SANRAL has done thus far,” he said.

Chairperson of the SANRAL Board, Mr Themba Mhambi, delivered the keynote address and answered a few of the community’s burning questions.

“We are grateful that you are all here, we truly appreciate the way you have been engaging with SANRAL. We are not here to be defensive. We are here to share information and listen attentively so we can correct anything that is not right. As a public institution we are duty bound to work with the government at the level of the community.”

“We are going to make sure the NGOs and business forums are bought into such engagements. We are also making sure that in our engagements with the municipality, all the various stakeholder groups are involved. SANRAL is not perfect and the only way to improve this is continued engagement with you, the municipality and the PLC [project liaison committee] members.”

Members of the community emphasised the need for SANRAL to host another engagement session soon to discuss in detail the issues raised. SANRAL was in full agreement with that request.

Richards Bay, 18 October 2021 – Black businesses stand to receive up to 40 per cent of the contract value on two periodic maintenance contracts on the N2 in the King Cetshwayo District Municipality, exceeding the minimum target of 30 per cent.

The good news was announcement by Deputy Minister of Transport, Ms Sindisiwe Chikunga, at a stakeholder engagement session of the South African National Roads Agency SOC Limited (SANRAL) in the uMfolozi Local Municipality today.

“In line with SANRAL’s Transformation Policy and government’s Preferential Procurement Regulation, a minimum of 30 per cent of the contract value of all projects is to be subcontracted to targeted enterprises, in a bid to prioritise economic development opportunities for black-owned entities. These entities include women-owned businesses, youth-owned businesses and companies owned by or which benefit persons with disabilities. However, in this case, SANRAL is exceeding that target and a total of 40% of the contract value is set aside for black businesses,” said Deputy Minister Chikunga.

The first project is periodic maintenance on the N2, from Empangeni T-Junction for 15km, with a contract value of more than R83 million. There are currently 20 persons directly employed on site, 16 of which are from the uMhlathuze Local Municipality area. The number of employees is expected to increase to 60 in the coming weeks.

The second project is periodic maintenance on the N2, from Eteza Weighbridge, for 15km. The value of the project is R89 million, of which more than R30 million is for black-owned SMMEs. More than R3 million will be set aside for women and youth-owned businesses. The bulk of the workers currently on site are from the uMfolozi Local Municipality.

“Both these projects started in April this year and we anticipate completion by April 2022. Of the more than R4 million wage bill for each of these projects, at least R2.8 million will be targeted at women and youth,” said Trevor Zumani, SANRAL Project Manager.

The event was hosted by the King Cetshwayo District Municipality Deputy Mayor, Cllr Jabu Vilakazi who expressed huge appreciation for the economic injection that these road construction projects bring to the various local municipalities and the district at large. Also in attendance was the MEC of Transport in KZN, Ms Peggy Nkonyeni. She echoed the sentiments of the Deputy Minister and lauded the effective cooperative governance across national, provincial and municipal structures, to the benefit of SMMEs and local job seekers, while emphasising the need for more economic development opportunities for women.

SANRAL Board Chair, Mr Themba Mhambi, emphasised the importance of supplier development: “We prioritise training for successful subcontractors, with ongoing mentoring under the main contractor, to ensure growth and development. Subcontractors should be capacitated to eventually become main contractors.”

To this end, SANRAL has MOUs in place with several partners. One such MOU is with the South African Forum of Civil Engineering Contractors (SAFCEC). The MOU with SAFCEC is geared to explore options and solutions that enable mentorship, development, capacity building and training of small contractors, giving them the skills and knowledge needed to execute road construction and maintenance projects.