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The 2021 Budget Speech provided hope against a backdrop of COVID-19, with the Finance Minister highlighting government’s R791 billion infrastructure investment drive. He also warned that, as a developing country facing many challenges, the user-pays principle would have to hold sway.

“The mighty N1 from Cape Town to Beitbridge, the scenic R71 that meanders through the misty mountains of Makgoebaskloof and delivers us to the Kruger National Park, and the expansive N4 that stretches from Botswana across our country into Mozambique. They are part of the lifeblood of the regional economy.”

He added that government was already partnering with the private sector and other players to roll out infrastructure through initiatives such as the blended finance Infrastructure Fund. “However, all these efforts to expand infrastructure will be wasted if the end user does not pay a cost?reflective tariff for usage,” he concluded.

In order to improve access to African markets, our six busiest border posts will be upgraded and expanded. These will be significant infrastructure interventions using the PPP model. Starting with Beitbridge, which was built in 1929 and last upgraded in 1995, these One-Stop-Border-Posts will harmonise the crossing of borders by people and goods.

Emphasising that this was not an austerity budget, Minister Mboweni said government’s R6.2 trillion spending envelope over the Medium-Term Expenditure Framework (MTEF) would give life to President Cyril Ramaphosa’s Economic Reconstruction and Recovery Plan, announced last October.

Recent State of the Province addresses included the following updates on road infrastructure investments.

Premier Sihle Zikalala: KwaZulu-Natal

Last year we announced a massive infrastructure investment by SANRAL for the upgrade of N3 and N2 in the province. The first phase of the upgrade between Lynnfield Park and Cato Ridge has been awarded and work is expected to commence in March this year. The expected job creation for the entire project is 11 000 over the next 8- to 10-year period.

More than R9 billion of the R30 billion value of the project will go to emerging contractors and SMMEs. Noting that this will result in major traffic backlog and congestion, we have directed the Department of Transport and SANRAL to immediately develop a comprehensive plan to improve the condition of R103 and other alternative routes. Equally, the first phase of the N2 contract is at an advanced stage to be awarded and work will commence soon between KwaMashu and Umdloti

Premier Oscar Mabuyane: Eastern Cape

Through the same policy shift, we continue to reap significant benefits in investments on our road infrastructure network. SANRAL will be rolling out multiple roads infrastructure projects in 10 critical trade routes across our province.

Premier Chupu Mathabatha: Limpopo 

Regarding the improvement of our road infrastructure, we wish to commend SANRAL for the completion of the much-awaited Polokwane N1 Ring Road. There is no doubt that will stimulate economic activity aimed at reducing the cost of doing business, the travelling time for workers, and further reduce traffic congestion in the city of Polokwane.

We are also delighted with the progress taking place at the R81 between Munnik and Ga-Sekgopo. The 10km stretch improvements will go a long way in easing traffic congestion and reducing the number of road accidents in that area.

An estimated 7 000 project-related jobs will be created during construction of the new N2 Wild Coast Road (N2WCR). A further 29 000 permanent direct and indirect jobs may also be created during the service period of the road once it is opened.

The N2WCR is one of national government’s key Strategic Integrated Projects (SIPs), and will serve as a critical catalyst for economic growth at national, provincial and regional level. During a visit to SANRAL’s multibillion-rand project, Transport Minister Fikile Mbalula said the N2WCR will have a positive economic impact at regional level in the short term, as it provides a national route that improves access to the east coast region of South Africa, while reducing road-user costs and optimising safety, comfort and socioeconomic benefits.

Budgets for the N2WCR haul and access road projects are being spent on local labour and SMMEs and on awarding them with generic, and technical training on entrepreneurship.

“SANRAL is committed to SMMEs, and all SMMEs working on SANRAL projects receive South African Qualifications Authority-accredited training. This training provides SMMEs with the experience needed to improve their Construction Industry Development Board (CIBD) grading. Several of these SMMEs formed part of SANRAL’s integrated community development programme – a 24-month programme comprising skills training in entrepreneurship, engineering and tendering,” the Minister said.

The N2WCR extends 410km between the N2 Gonubie Interchange, near East London, and the Mtamvuna River bridge on the border between the Eastern Cape and KwaZulu-Natal.  “The N2 Wild Coast road project is the economic artery that is going to bring the Eastern Cape alive,” Minister Mbalula commented.

He said the proposed route alignment would connect major economic centres, significantly reducing carbon emissions, and save the South African economy about R1.5-billion a year in time-cost savings.

“District road intersections will be upgraded along the entire route in order to provide turning slots and improve safety. Villages and informal access will be closer and feeder roads will be built to provide access at new, safe and appropriate access points, in order to improve safety and provide grade separation accesses across the route,” he added.

SANRAL’s role in the country’s economic recovery is key, and the agency is deliberate in contributing to the preservation of livelihoods through the awarding of projects, job creation and infrastructure delivery.

While strengthening efforts and response to COVID-19, SANRAL will continue to endeavour to transform the national landscape through the work they execute, by creating greater access to markets and supporting the development and participation of black business.

A key requirement in attaining SANRAL’s transformation objectives continues to be the development of contractors, consultants and suppliers. SANRAL’s supplier development programme continues to strengthen efforts in this space, by enhancing current initiatives like the Supplier Development Desks and the online Supplier Development Portal, as well as introducing new initiatives such as supplier development pre-tender training.

The Supplier Development Desks at each of SANRAL’s regional offices are now operational. The online portal will also be launched soon, allowing for continued assistance to SMMEs while reducing risk exposure during the pandemic.

In pursuit of its transformation policy objectives, SANRAL has committed to supporting the development and participation of black-owned businesses by embarking on an extensive training programme that seeks to empower Targeted Enterprises with the much-needed skills and knowledge to effectively participate in upcoming subcontract opportunities.

An open tender for SMME training was advertised on 12 February 2021 to procure a suitable service provider to provide training to Targeted Enterprises. More than 10 000 individuals from different Targeted Enterprise businesses will benefit from this initiative in the next 2–3 years. The training will include construction pre-tender and post-tender training, to ensure the success of Targeted Enterprises participating in the programme.

Furthermore, the Targeted Enterprise businesses will also benefit immensely from the established strategic partnership that SANRAL has secured through its Memorandums of Understanding (MoUs) with industry players. The MoUs are intended to promote the development of small contractors and increase opportunities for them to access funding, construction equipment (either for purchase, hire or lease), as well as training and mentorship.

“Our transformation policy has clearly defined targets for the participation of black contractors, suppliers and professionals in all projects and procurement commissioned by SANRAL. It underlines that SANRAL can help to build a capable and developmental state and drive economic development through the provision and maintenance of critical infrastructure,” said SANRAL Board Member Thamsanqa Matosa.

Job loss, financial difficulty and the unique dynamics of operating in the ‘new normal’ created by the pandemic have had an impact on the country at large. Now is the time to increase efforts to get the country back to being able to deliver.

President Cyril Ramaphosa identified infrastructure development as the flywheel that will kickstart South Africa’s economy post-COVID-19, and SANRAL is committed to expanding the net of economic inclusion for emerging black businesses to participate in its projects.

Routine road maintenance (RRM) projects create jobs across the country and enable  SMMEs to access economic development opportunities which benefit not only small businesses and local labour, but regions at large.

RRM and other improvements are essential activities to keep our road systems in top shape. In 2019/20, SANRAL extended RRM contracts worth more than R2.5bn. RRM entails, among others, cleaning drains and culverts, vegetation control, line marking, guard rail repair, road sign repair and road patching.

All SANRAL projects are designed to drive transformation in the industry by offering small contractor development support as well as training and community participation. RRM activities are also an opportunity for local SMMEs to get skills development and training through on-the-job experience.

To take the Northern Cape as an example, the agency has committed more than R4bn to road maintenance and improvements over the next three years and a large portion of this will go to SMMEs. Of this, approximately R500m is specifically set aside for RRM. Between 40% to 60% of this value is specifically targeted at SMMEs, including approximately R50m for entry-level road maintenance subcontractors. As just one example, in Naledi Local Municipality in North West, two RRM projects cover 155.70km on the N14 section 9, NN18 sections 4 and 5 and R31 section 1, as well as 163.50km on the N14 section 8, and N18 sections 2 and 3. The main contractor has been appointed and plans are under way to ensure that 50% of the contract, i.e. R58m that must be subcontracted, benefits as many SMMEs as possible.

SANRAL projects are district-based and municipal-based. “This makes it possible for us to resolve community concerns related to our mandate. This grassroots approach ensures that we create opportunities within all the communities we service,” said Ernest Nqenqa, SANRAL’s Northern Region Project Manager.

SANRAL projects require the establishment of a Project Liaison Committee (PLC) prior to contract work being issued. The key role of the PLC is to ensure that there is transparency on how labour and sub-contracting opportunities are awarded and, most importantly, that the local community is integrated as constructively as possible.

SANRAL has a 14-Point Plan to facilitate better project level liaison with local communities and structures. The Plan serves to ensure communication and transparency in the execution of works, ensuring inclusivity in allocation of projects to benefit black business and local communities.

The agency remains committed to SMME development and community engagement in the quest to transform the industry, as well as its overall strategy Horizon 2030 that is aligned to the government’s National Development Plan.

 

The N7 linking Cape Town with Namibia is one of the most picturesque national roads in the Western Cape, as well as a key route for leisure, business and industrial travel. The upgrade of the N7 was a monumental task, divided into five separate construction projects stretching from the Melkbosstrand Interchange all the way to the Hopefield Interchange.

The R512 Pampoennek route in the North West has been officially opened by Transport Minister Fikile Mbalula. This road creates a better link to the North West from Gauteng, and ensures that long-distance movements do not interfere with local traffic.

The long-awaited upgrade to the N3 National Route started on 21 January 2021. The upgrades form part of a R30 billion upgrade for both the N2 and N3 highways programme in and around Msunduzi and Durban Metropolitan Municipality in KwaZulu-Natal.

Recent media reports state that the South African National Roads Agency SOC Limited (SANRAL) intends to use the Administrative Adjudication of Road Traffic Offences Act (No. 46 of 1998) “AARTO” legal framework to either fine or have motor vehicle licence renewals blocked if motorists have outstanding e-toll fees.

As previously communicated to the media, the legal processes open to SANRAL for outstanding toll fees have been placed on hold until such time as a decision regarding e-tolls has been made by Cabinet.

SANRAL is aware than in the light of an imminent decision on e-tolls there will be attempts by various stakeholders to influence that decision. The regurgitation of old stories is clearly an attempt to do that. The agency would not like to be part of this clear lobbying that is going before a decision on e-tolls is taken. SANRAL, like all other stakeholders, keenly awaits the announcement of the decision. Until then, the agency would prefer to stay out of the matter.

With road infrastructure being prioritised in South Africa’s economic recovery plan in a post-COVID environment, the upgrade of the Thembalethu Bridge in George, bodes well for the Southern Cape economy. This project is a collaborative venture between SANRAL and the George Local Municipality, with the National Department of Transport having provided R82,127 million towards the funding of the project. SANRAL is the Implementing Agent working closely with the George Municipality.

The total construction period is between 24 and 30 months, which should create project participation opportunities for SMMEs as well as both direct and indirect jobs for the local community.

The scope of works involves the widening of the Thembalethu Bridge across the N2 from a single carriageway to accommodate two lanes in each direction, with additional turning lanes as well as extra space for pedestrians and cyclists.

“A new bridge will be constructed on the Western side. Once completed, the existing bridge will be raised and stitched to the new bridge, to ensure that the upgraded structure complies with the minimum bridge clearance of 5.2 metres,” explained Petronella Theron, SANRAL Project Manager.

Detailed design works is currently being finalised and the tender for a contractor will be out by June 2021. Taking the procurement processes into account, the contractor should be appointed by November 2021.

All SANRAL projects are guided by a 14-point plan that sets the tone for project liaison, sub-contracting and labour sourcing, as well as a commitment to its transformation policy that seeks to prioritise economic empowerment of black businesses in South Africa.

“With 30% of the project value being committed to targeted enterprises for subcontracting, there are huge opportunities for start-ups and emerging SMMEs to benefit from project participation,” said Thembinkosi Mosobela, SANRAL Stakeholder Coordinator in the Western Region.

A process of engagement with relevant stakeholders, is already underway and SANRAL, together with the George Local Municipality will explore opportunities to provide training and development of SMMEs in the road construction sector, to ensure that they are equipped, capacitated and ready to tender for work packages that become available on this project.

“These information-sharing and training sessions are of cardinal importance to ensure we broaden the scope of economic opportunities to businesses in the surrounding communities. Our transformation objectives are particularly aligned to facilitate participation of persons with disabilities, women-owned businesses as well as youth-owned operations,” continued Mosobela.