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SMME contractor already eyeing more opportunities on SANRAL projects

MEDIA STATEMENT

SMME contractor already eyeing more opportunities on SANRAL projects

The realignment of N11 between Ladysmith and Newcastle linking the port of Durban via the N3 underway

Ladysmith, 31 October 2024 – When the South African National Roads Agency SOC Limited (SANRAL) finally signs off on all the upgrades on the N11, a small contractor from the rural KwaZulu-Natal town of Umsinga will look back at his contribution with pride and gratitude.

Vuyani Mabaso’s company, Golden Millennium Trading, is constructing culverts under the main contractor, Raubex Construction, on the R750-million upgrade of a 28km stretch from Ladysmith to Elandslaagte in the Alfred Duma local municipality.

The N11 is a national route running from the Botswana border at Groblersbrug through Mokopane in Limpopo, Middleburg and Ermelo in Mpumalanga and Newcastle in KwaZulu-Natal. It ends at the N3 just after Ladysmith.

The three-year project Mabaso is working on will resolve chronic traffic congestion and reduce road carnage on this corridor critical for economic growth of the Southern African Development Community (SADC) region.

It links the port of Durban via the N3 with the mining towns of Mpumalanga and other neighbouring countries. The upgrade entails widening the Modderspruit and Barend Marais Bridges, constructing a new road-over rail bridge, upgrading two existing intersections and the addition of new lanes. Roads within Ladysmith are also being upgraded.

Shaun Collins, Raubex’s contracts manager on the project, said the road was not only being widened and resurfaced but also being realigned to enhance visibility at high-risk collision spots.Deviation roads have been constructed to minimise delays for the duration of the project, which started in June 2023 and is due for completion in June 2026. Collins said an important component of their work on the N11 involved the employment of local labour and providing opportunities to emerging contractors.

It is SANRAL policy that 30% of the contract value, in this case R225-million, should be set aside for targeted enterprises owned by black women, youth, military veterans, those with disabilities and those still getting off the construction blocks with lower gradings by the Construction Industry Development Board (CIDB).

Almost R43-million has been spent on the subcontractors already – and Mabaso is one of them. “This is the biggest job I have ever done since I started my company back in 2001. It is also my first opportunity with SANRAL, constructing culverts on this N11. The contractor has given me tremendous support by offering training not only to me, but also to my employees who are shutter hands and also mix concrete.

“They have also received health and safety certificates, which will open further doors for them long after this work has been completed,” he said.

“My company is Grade 5 now, but I see myself moving up to Grade 6 or 7 after my experience here. This is massive for me. Previously I worked on municipal roads and constructed a football field in Msinga. I am now exploring bigger opportunities and will certainly submit a bid for the next phase of the N11 upgrade.”

Mabaso has a word of encouragement for other up-and-coming subcontractors. “Hard work pays off. You should never be discouraged when things don’t go well initially, your day will come,” he advised them.

For Lwazi Nkosi, a Mangosuthu University of Technology civil engineering diploma graduate from nearby Matiwane’s Kop, the upgrade of the N11 provided him with an opportunity to gain experience as an intern.

“Working here I have learnt a lot more about structures – from development and construction. I previously worked on roads. Now I hope to learn more about what happens after the completion.“My internship runs until December. After that I want to further my studies and obtain a higher diploma in civil engineering. Thereafter I want to work as a site agent on projects like this.”

He applauded SANRAL for bringing this project to his locality. “There are many people from areas around here who have found employment on this construction site. They came here as general workers but will leave as skilled labour. That is how this project has impacted the community positively,” he said.

It is estimated that 850 full-time equivalent direct jobs would be created on this project with an estimated R200-million set aside for local labour wages.
Mabaso is already thinking about SANRAL opportunities beyond this N11 upgrade.

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SANRAL embarks on a Contractor Development Programme in Polokwane

MEDIA ALERT

SANRAL embarks on a Contractor Development Programme in Polokwane

Pretoria, 31 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) is introducing its Contractor Development Programme (CDP) to construction companies in Polokwane on Friday, 1 November 2024. This is part of a countrywide roadshow from 21 October to 7 November 2024.

SANRAL’s CDP aims to increase the capacity, equity ownership, sustainability, quality of work produced and improve the performance of grade 5CE to 9CE contractors registered with the Construction Industry Development Board (CIDB).

Through the CDP, SANRAL will create a unique platform for grade 5CE to 7CE contractors to maximise participation on its projects. The programme prioritises skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

Members of the media wishing to attend the event can do so as per the details below:

Date: Friday, 1November 2024

Time: 10:00 am

Venue: Old Peter Mokaba Stadium

RSVP: Hendrik Tolomo on 067 410 4329 or Hendrik.tolomo@fticonsulting.com

Postponed N2/N3 EB Cloete upgrades and road closures

UPDATED TRAFFIC ADVISORY

Postponed N2/N3 EB Cloete upgrades and road closures

Durban, 30 October 2024 – The road closure for bridge jacking at the EB Cloete Interchange, affecting the route from Durban CBD (N3 Westbound) to King Shaka International Airport (KSIA) (N2 Northbound), has been postponed, the South African National Roads Agency SOC Limited (SANRAL) has announced.

“The road closure, which was supposed to take place on Saturday, 2 November, to early Monday morning on 4 November 2024, has been postponed due to unforeseen circumstances,” said Corné Roux, SANRAL’s Eastern Region Project Engineer.

The road closure will now take place on a future date yet to be advised.

“SANRAL apologises to road users for any inconvenience this may have caused,” said Roux.

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Eastern Cape contractors welcome SANRAL’s Contractor Development Programme

MEDIA RELEASE
Eastern Cape contractors welcome SANRAL’s Contractor Development Programme

29 October 2024 – Black contractors in East London and Mthatha have commended the South African National Roads Agency SOC Limited (SANRAL) on its new Contractor Development Programme (CDP), designed to develop and grow grade 5 to 9 CE contractors.

SANRAL presented its new Contractor Development Programme to contractors and other stakeholders at consultative sessions held on 28 and 29 October in East London and Mthatha respectively. This formed part of a countrywide roadshow taking place between 21 October and 7 November 2024 to introduce the CDP to affected stakeholders.

Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer, said: “SANRAL has identified a need to create a platform for the development of emerging contractors to enable them to compete with the established players that have dominated the sector and capitalised on the roads agency’s projects over the years.”

SANRAL is implementing the three- to five-year CDP to increase the capacity, equity ownership, sustainability and quality of work produced by grade 5 to 9 CE contractors.

registered with the Construction Industry Development Board (CIDB), as well as to improve their performance.
“We want to make sure that when you leave the programme you are able to bid for other work within and outside of SANRAL and that your quality of work is of a superior standard. We want to ensure that you emerge with sound financial management tools to reinvest in your company as it scales upward,” added Memeza.

Memeza said the CDP sessions in the Eastern Cape sessions had been very engaging, which demonstrated the eagerness of contractors and black industrialists to participate in the programme and showed that they were invested in its success.
Through the Contractor Development Programme, SANRAL will create a unique platform for CIDB grades 5 to 7 to maximise participation in its projects. SANRAL will provide skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

Mr Siphiwo Mxhosa, SANRAL’s Acting General Manager for Transformation and Stakeholder Relations, said: “We should not speak of transformation in theory. SANRAL is implementing various multi-billion rand projects in the Eastern Cape, including the upgrading of the N2 from KwaBhaca to eMaxesibeni valued at R1.2bn, the R56 from Matatiele to the KwaZulu-Natal border valued at R1.2bn, and the Msikaba and Mtentu mega bridges on the R23bn N2 Wild Coast Road project. These are massive projects which present huge opportunities for all contractors, big and small.”

Mr Mxhosa said SANRAL wanted to ensure that companies owned by previously marginalised groups – that is black (African, Coloured and Indian) people, black women, black youth, people with disabilities and military veterans – “become the main beneficiaries of our intensive road infrastructure build programme”.

He added that SANRAL’s approach was in line with the Public Procurement Act, which sought to enhance effective economic use of public resources in order to advance transformation and broaden economic participation.
Ms Memeza said the success of the Contractor Development Programme would largely depend on the funding to be provided to the targeted companies in the programme.

SANRAL would extend an interest free loan, paid in advance, of between 15% and 20% of the contract value to contractors. This was meant to assist with the working capital at the start of the projects.

The participating contractors graduate from the CDP after completion of developmental goals. These include:
?Successful completion of an NQF 5 or similar learnership;
?Upgrading of CIDB grade at least one level above from when they entered the programme;
?Having the required capital available from their current CIDB grading;
?The company is sufficiently staffed with experienced and competent individuals to graduate out of the programme.

Feedback from contractors in attendance included alleged fronting, which undermine SANRAL’s transformation efforts. SANRAL was urged to ensure that black-owned consulting companies were not left behind in the process, and was requested to review its requirements to enable participation by more black-owned accredited training service providers.

Industry stakeholders such as the CEO of the Amathole Economic Development Agency, Avuyile Xabadiya, said SANRAL’s Contractor Development Programme would assist in fast tracking local economic development goals in the region and that the agency would lend the necessary support to the CDP.

Ms Memeza said SANRAL would publish an expression of interest for interested contractors to make submissions, with the aim of appointing selected contractors to participate in the CDP by April 2025.

The closing date for comments and written submissions on SANRAL’s Contractor Development Programme is 7 November 2024. All written submissions can be sent to cdpbis@sanral.co.za
An audio clip with English sound is available here: Mr Siphiwo Mxhosa at CDP Mthatha.m4a //ENDS
Issued by FTI Consulting on behalf of SANRAL. For editorial content or additional information contact: Lwando Mahlasela on 082 440 5305 or pressoffice@nra.co.za

Stop/Go in place on N2 upgrade between Houwhoek Pass and Caledon

TRAFFIC ADVISORY

Stop/Go in place on N2 upgrade between Houwhoek Pass and Caledon

Cape Town, 30 October 2024 – Three Stop/Go traffic accommodation points are currently in place on the N2 between Botrivier and Caledon, where periodic maintenance is being done, the South African National Roads Agency SOC Limited (SANRAL) has announced.

Furthermore, road users are advised that lane closures will be in place on the Houwhoek Pass in order to place an asphalt overlay. There will always be one lane open to traffic in each direction of the pass during the resurfacing operations.

The project is scheduled to be completed in February 2025. However, the full road width will be open to two-way traffic during the year-end construction shutdown period (i.e. mid-December to mid-January).

The contractor has recently commenced the reseal of the road surface, which necessitates the Stop/Go traffic accommodation measures. “Due to the volume of traffic on the N2, the waiting times generally last up to 30 minutes each. The contractor is making every effort to finish the work ahead of schedule in order to minimise the delay to road users,” said Krishna Naidoo, Project Manager.

SANRAL appeals to road users to be patient and compliant with speed restrictions and to factor in additional travel time, especially for learners and students who are busy with exams. The roads agency apologises for this short-term inconvenience in pursuit of long-term mobility and road safety improvements.

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N2/N3 EB CLOETE UPGRADE AND ROAD CLOSURES

UPDATED TRAFFIC ADVISORY
N2/N3 EB CLOETE UPGRADE AND ROAD CLOSURES

Durban, 28 October 2024 – The installation of the temporary pedestrian bridge over the N3 at Rockdale Road between St James Avenue/Harry Gwala Road Interchange and the EB Cloete Interchange has been postponed, the South African National Roads Agency SOC Limited (SANRAL) has announced.

The temporary road closures will now take place on:

•N3 Eastbound carriageway closure: 20:00 on Monday, 04 November 2024 to 00:00 on Tuesday, 05 November 2024
•N3 Westbound carriageway closure: 00:00 on Tuesday, 05 November 2024 to 04:00 on Tuesday, 05 November 2024

The Eastbound carriageway will be the first closure followed by the Westbound carriageway, on the same evening.
“These closures are to allow for the installation of a temporary pedestrian bridge to provide a safe crossing for pedestrians commuting between Chesterville and Westville due to the Rockdale Bridge being demolished at the end of August 2024,” said Corné Roux, SANRAL’s Eastern Region Project Engineer.

This provision forms part of SANRAL’s continuous drive to ensure pedestrian safety on its road network.
As required for the safety of both road users and the construction team, full traffic accommodation plans are in place.
Trucks and heavy vehicles are advised to try and delay trips over this period and/or find suitable staging areas over the timeframe to avoid major congestion. Public transport operators are asked to ensure their drivers are aware of route closures and alternatives affecting their commuter routes.

Light vehicle traffic as well as emergency services and traffic management are advised to make use of alternative routes.
A detailed alternative route guide is included below and can be found on this link: https://www.nra.co.za/project-n2n3-upgrades?region_id=eastern
All road users are advised to plan their routes ahead of time and where possible, leave for destinations earlier than usual.

ALTERNATIVE ROUTES OPTIONS:
N3 Eastbound closures (Pinetown to Durban):

•N3 Eastbound fully closed at St James Avenue/Harry Gwala Road Interchange. The off-ramp to Westville/Pavilion Shopping Centre will remain open
•St James Avenue loop ramp will be closed from the Pavilion to Durban
•St James Avenue left slip will be closed from Westville to Durban

N3 Westbound closures (Durban to Pinetown):
•N3 Westbound fully closed at EB Cloete Interchange (AKA Spaghetti Junction), motorists can only proceed to the N2 North or South.
•N2 Northbound off-ramp closed at EB Cloete Interchange from Amanzimtoti to Pinetown.
•N2 Southbound off-ramp closed at EB Cloete Interchange from Umhlanga Rocks to Pinetown.

“SANRAL appeals to road users to note and comply with the advance warning signs and speed restrictions when travelling past the construction work zones,” said Roux. “To prioritise the safety of both the construction workers and road users, the speed limit along the route will be reduced during construction. SANRAL apologises for any inconvenience caused and appreciates the public’s patience during the ongoing major road enhancements.”
//Ends
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Issued by FTI Consulting on behalf of the South African National Roads Agency SOC Limited (SANRAL). For editorial content or additional information contact Lwando Mahlasela on 082 440 4305 pressoffice@nra.co.za

SANRAL aims to empower black economic industrialists through Contractor Development Programme

MEDIA RELEASE

SANRAL aims to empower black economic industrialists through Contractor Development Programme

Caption: Tshegare Moletsane, SANRAL’s Transformation Officer, explaining the importance of the Black Industrialist Scheme

Kimberley 27 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) on Friday introduced its Contractor Development Programme (CDP) to black contractors in the Northern Cape.

This initiative forms part of SANRAL’s broader Horizon 2030 Strategy and Transformation Policy, which seeks to foster the growth of black industrialists across the construction value chain.

SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza, introduced the CDP to the local construction community, emphasising SANRAL’s commitment to transforming the sector.

The construction industry plays a vital role in shaping the socio-economic landscape of South Africa, and SANRAL is keenly aware of its potential to uplift communities through job creation and business opportunities.

“If an infrastructure doesn’t have pillars, it will collapse,” said Memeza. “We’ve seen we can’t operate if we don’t make transformation our centre and stronghold, so it’s been elevated to a pillar, and this Contractor Development Programme accompanies it.”

Thandi Solo, a representative of the South African Women in Construction organisation (SAWIC) and a contractor, commended SANRAL for its dedication to promoting transformation within the construction industry.

Solo remarked, “I appreciate SANRAL for the good work you are doing by actively prioritising transformation, particularly by targeting women.”

In alignment with SANRAL’s transformation goals, Tshegare Moletsane, SANRAL’s Transformation Officer, emphasised the importance of nurturing black industrialists within the sector.

“An industrialist is vital to us because we don’t want a situation where, when part of the construction value chain encounters challenges, the Contractor Development Programme, and ultimately SANRAL, suffers,” Moletsane explained.

He elaborated on the role of black industrialists, saying, “A black industrialist is a producer. You are not going to be constrained by anybody, you are going to produce to your maximum.

“We really want you guys in the next five years to match the big fives, to really resource you, to give you a platform that you can really prove yourselves and grow. That’s a mindset that we want to move you away from being a subcontractor mentality to really start playing with the big boys. We really need your support and your focus.”

The CDP specifically addresses the challenges faced by contractors in the “missing middle” of Construction Industry Development Board (CIDB) grades, focusing on grades 5CE to 7CE.

These contractors often face difficulties in securing work, obtaining experience and developing their businesses. The programme aiming to bridge these gaps by providing contractors with access to SANRAL projects, as well as critical support such as training, mentoring and financial assistance.

The purpose of the programme is to:

  • Provide a platform for CIDB grades 5 to 7 contractors to maximise participation and skills development.
  • Include emerging contractors with potentially emerging (PE) status in tender documents.
  • Create opportunities for recently upgraded CIDB grades 8 and 9 to gain experience and participate in SANRAL projects.
  • Offer training, mentoring, financial support, and other resources to ensure contractor growth and sustainability.
  • Improve the grading of participating contractors by at least one level over five years.

By implementing this programme, SANRAL aims to improve the overall performance of contractors in terms of financial viability, innovation, competitiveness, quality, and employment practices.

Additionally, the CDP is designed to increase the participation of black women, people with disabilities, youth and military veterans in SANRAL projects. This will create a more inclusive construction industry that reflects the diversity of South Africa.

Memeza elaborated on SANRAL’s vision. “We want to be sure that we develop black construction companies. Our goal is to create an environment where these contractors not only obtain work but do so continuously through a competitive process.”

The CDP is a cornerstone of SANRAL’s commitment to ensuring that South Africa’s infrastructure is built by a skilled, diverse, and sustainable workforce.

Through this programme, SANRAL envisions a future where local small, micro, and macro enterprises (SMMEs) play a central role in the construction and maintenance of the country’s road infrastructure, while creating lasting economic benefits for all South Africans.

As part of the programme’s intended developmental outcomes, SANRAL aims to:

  • Elevate the grading of participating contractors.
  • Ensure ongoing participation and work opportunities for these contractors through competitive processes.
  • Promote best practices in financial management, safety, and environmental responsibility.

With the launch of the Contractor Development Programme, SANRAL is taking decisive steps towards realising its Horizon 2030 vision of a transformed and inclusive construction industry.

An audio clip with English sound is available here: https://we.tl/t-HujNrlKFHg

//Ends

FURTHER BACKGROUND:

The CDP also aims to improve the financial, technical and managerial skills of participating contractors, ultimately leading to an upgrade in their CIDB grading and long-term sustainability.

The CDP will be implemented across various SANRAL projects, with a focus on both road construction and routine maintenance work. Contractors selected for the programme will be supported through a combination of practical training, mentorship and financial assistance.

One of the key features of the CDP is the inclusion of an interest-free loan from SANRAL, amounting to between 15% and 20% of the contract value. This funding will help contractors manage their working capital needs, particularly at the start of projects. Additionally, SANRAL has established partnerships with various funding institutions and equipment suppliers to provide further support to contractors.

In terms of project participation, SANRAL’s procurement policies will ensure that selected contractors are allocated projects within their province of residence, or, if necessary, in neighbouring provinces. Each contractor will participate in the programme for a minimum of three years, with the opportunity for a maximum of five years.

As with all SANRAL projects, the CDP will be subject to rigorous monitoring and evaluation. SANRAL is committed to ensuring that the programme delivers on its transformation agenda, and that participating contractors are able to graduate from the programme with enhanced skills, financial stability, and a stronger CIDB grading.

SANRAL will establish a steering committee to oversee the implementation of the CDP, comprising representatives from engineering, procurement, finance, legal and transformation departments. This committee will ensure that the programme remains aligned with SANRAL’s strategic objectives and that contractors receive the support they need to succeed.

UPDATED GLADYS MANZI TO NEW ENGLAND ROAD UPGRADE CLOSURES

UPDATED TRAFFIC ADVISORY

UPDATED GLADYS MANZI TO NEW ENGLAND ROAD UPGRADE CLOSURES

Pietermaritzburg, 24 October 2024 – The proposed temporary road closures for the installation of bridge beams that were planned for Saturday 26 and Sunday 27 October 2024 have been postponed, the South African National Roads Agency SOC Limited (SANRAL) has announced.

The temporary road closures will now take place on:

  • N3 North bound closure: 21:00, Saturday 9 November 2024 to 05:00, Sunday 10 November 2024
  • N3 South bound closure: 21:00, Sunday 10 November 2024 to 05:00, Monday 11 November 2024

The operation is weather dependant, and should the operations not be able to meet the above dates, the following dates are reserved as alternative:

  • N3 North bound closure: 21:00, Saturday 16 November 2024 to 05:00, Sunday 17 November 2024
  • N3 South bound closure: 21:00, Sunday 17 November 2024 to 05:00, Monday 18 November 2024

“We apologise for any inconvenience caused. Our traffic accommodation team, with the assistance of the Road Traffic Inspectorate (RTI) will monitor the closures for their full duration,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

“Increased traffic volumes can be expected at the Market Road interchange as well as the roads leading to them. Trucks and heavy vehicles are advised to try and delay trips over this period and/or find suitable staging areas to avoid major congestion. Public transport operators are asked to ensure their drivers are aware of route closures and alternatives affecting their commuter routings. Light vehicle traffic, as well as emergency services and traffic management are advised to make use of alternative routing. SANRAL apologises for any inconvenience caused and appreciates the public’s patience during the ongoing major road enhancements.” said Lowe.

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Transport Minister Barbara Creecy lauds mobility improvements flowing from R4.5 billion Huguenot Tunnel upgrade

MEDIA RELEASE

Transport Minister Barbara Creecy lauds mobility improvements flowing from R4.5 billion Huguenot Tunnel upgrade

Caption: Transport Minister Barbara Creecy explains the significance of the Huguenot Tunnel upgrades to media

Cape Town, 24 October 2024 – Transport Minister Barbara Creecy says the R4.5 billion project to construct a new 3.9km section of the Huguenot Tunnel on the N1 national road holds significant economic benefits for the Western Cape. Minister Creecy today (Thursday) conducted an inspection of the Huguenot Tunnel, operated by the South African National Roads Agency SOC Limited (SANRAL), an entity of the national Department of Transport.

Minister Creecy said: “The upgrade of the Huguenot Tunnel is somewhat overdue. As a consequence, we are seeing increasing congestion in this tunnel. At the moment, traffic is only moving on one lane in each direction with an average of 13,000 vehicles passing through the tunnel on a daily basis and that number increases to around 25,000 during peak holiday periods.”

“Clearly, this stretch of the N1 is really important because it connects the ports of Cape Town and Saldanha to the hinterland. This is a very significant agricultural region but there’s also traffic coming from the north of the region and country as well. Once the upgrade of the tunnel has been completed in three to four years from now,

we will have two lanes carrying traffic in each direction, which will significantly reduce congestion. Most importantly, that will also allow for more efficient movement of goods and people,” said Minister Creecy.

She was accompanied by the provincial MEC for Mobility, Isaac Sileku, and the mayor of Drakenstein Municipality, Stephen Korabie,

Minister Creecy said the project would, in addition to improving mobility and reducing congestion, also create significant jobs and contracting opportunities.

SANRAL CEO Reginald Demana said SANRAL would be putting the construction of the new section of the Huguenot Tunnel out to tender in coming days and he hoped to see boots on the ground in the first half of 2025. The tunnel would be upgraded in accordance with international safety standards as well as meeting the mobility demands of the significantly increased traffic volumes that come with urban development, said Demana.

“The South Bore of the Huguenot Tunnel was built in the 1980s, so it requires a significant safety upgrade in relation to electricity supply and ventilation. Some of that work has been able to happen over the last couple of years but the electricity supply can only be significantly upgraded once we move all the traffic to the new section of the tunnel, the North Bore, which will be constructed over the next few years,” said Demana.

Minister Creecy further explained the significance of SANRAL’s infrastructure development programme. “During his Opening of Parliament Address on 18 July 2024, President Ramaphosa said the government would forge a new inclusive growth path for the country by pursuing massive investment in infrastructure. This investment drive includes major road infrastructure, which functions as arteries of our country’s economy by carrying goods and people – and is in line with one of the Seventh Administration’s top priorities to drive inclusive growth, create jobs and reduce poverty. Quality road infrastructure plays a critically important role in our economy, particularly given that roads currently facilitate the movement of people and the bulk of goods and services across our country,” she said.

At 3.9km, the Huguenot Tunnel is the longest road tunnel in Africa. It has been in operation for 36 years and has to date seen more than 125 million vehicles pass through.

The N1 is a vital link providing high mobility between Cape Town and the northern interior parts of the country and the Huguenot Tunnel through the Du Toit’s Kloof mountain range, which is located approximately 80 km outside Cape Town, aptly illustrates the importance of well-maintained and safely operated road infrastructure.

An audio clip is available for download here: https://we.tl/t-EqIaGU7r0U

//Ends

SANRAL introduces Contractor Development Programme to Western Cape

MEDIA RELEASE

SANRAL introduces Contractor Development Programme to Western Cape

Cape Town, 23 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) on Wednesday introduced its countrywide Contractor Development Programme (CDP) to black-owned businesses in the Western Cape. The programme aims to create opportunities for qualifying black contractors to be taken up into an incubation programme designed to support, develop and grow subcontractors to ultimately become main contractors.

SANRAL’s Head of Stakeholder Relations, Mr Siphiwo Mxhosa, said the new CDP would assist in ensuring that black (African, Coloured and Indian) contractors were given the necessary support to grow and develop.

Mr Mxhosa said: “SANRAL’s new Contractor Development Programme takes into account the fact that South Africa is the most unequal country in the world, and it is a Constitutional imperative for us to assist in levelling the playing fields. SANRAL is not in the business of destroying white established companies and creating black-owned companies. No, SANRAL is creating a balanced country, and we are doing justice to the real demographics in this country.”

“The majority of the most depressed and frustrated, poverty-stricken people in South Africa are not benefitting from the massive infrastructure-build economy. SANRAL is disbursing multi-billion rand tenders every year. We’re doing this work but it benefits too few. We have no intention to eliminate this few but we want to be fair and want to ensure that young people, women, people with disabilities and military veterans – all these vulnerable sectors of our society – must benefit from participating in this industry. We must be fair and let as many people and companies as possible benefit from the work that SANRAL is creating in the construction industry.”

Speaking to business owners in attendance at the Durbanville Conference Centre, SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza, explained SANRAL’s intention behind the CDP to contractors. The CDP is a new initiative by SANRAL which aims to increase the capacity, equity ownership and sustainability of emerging contractors in Construction Industry Development Board (CIDB) grades 5CE and higher. Grade 5CE companies have typically completed projects of between R6m and R10 million.

“We cannot do transformation by ourselves. We need committed contractors and potential MOU partners to hold hands with us and make this programme work. We want to see contractors on this programme grow by at least one or two grades as a result of the financial support, mentoring, training and capacity building,” said Ms Memeza.

SANRAL’s Western Region Manager, Randall Cable, encouraged contractors to take up the opportunities which the national roads agency is creating, noting that the region has a healthy pipeline of work that would significantly impact the road construction sector. Mr Cable had in September announced more than R6 billion worth of work in the market for the Western Cape and Northern Cape alone.

The Contractor Development Programme aims to:

  • Create a unique platform for CIDB grades 5 to 7 to maximise participation and skills development, addressing the challenge of ‘the missing middle’ CIDB grades.
  • Include potentially emerging (PE) status in SANRAL’s tender documents.
  • Develop a platform for recently upgraded CIDB grades 8 and 9 to participate on SANRAL projects, gaining necessary experience and support.
  • Provide training, mentoring, financial and other forms of support to contractors participating in the programme.

An audio clip with English sound: https://we.tl/t-Y20VOa4Ttl

//Ends

FURTHER BACKGROUND:

The CDP also aims to improve the financial, technical and managerial skills of participating contractors, ultimately leading to an upgrade in their CIDB grading and long-term sustainability.

The CDP will be implemented across various SANRAL projects, with a focus on both road construction and routine maintenance work. Contractors selected for the programme will be supported through a combination of practical training, mentorship and financial assistance.

One of the key features of the CDP is the inclusion of an interest-free loan from SANRAL, amounting to between 15% and 20% of the contract value. This funding will help contractors manage their working capital needs, particularly at the start of projects. Additionally, SANRAL has established partnerships with various funding institutions and equipment suppliers to provide further support to contractors.

In terms of project participation, SANRAL’s procurement policies will ensure that selected contractors are allocated projects within their province of residence, or, if necessary, in neighbouring provinces. Each contractor will participate in the programme for a minimum of three years, with the opportunity for a maximum of five years.

As with all SANRAL projects, the CDP will be subject to rigorous monitoring and evaluation. SANRAL is committed to ensuring that the programme delivers on its transformation agenda, and that participating contractors are able to graduate from the programme with enhanced skills, financial stability, and a stronger CIDB grading.

SANRAL will establish a steering committee to oversee the implementation of the CDP, comprising representatives from engineering, procurement, finance, legal and transformation departments. This committee will ensure that the programme remains aligned with SANRAL’s strategic objectives and that contractors receive the support they need to succeed.