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SANRAL launches Contractor Development Programme to support black contractors and further transform the construction industry

MEDIA RELEASE

SANRAL launches Contractor Development Programme to support black contractors and further

transform the construction industry

Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer, addressing stakeholders in

Bloemfontein on the Contractor Development Programme.

Bloemfontein, 23 October 2024 – The South African National Road Agency SOC Limited (SANRAL) has on Tuesday, 22 October 2024, continued a countrywide Contractor Development Programme to support and help black (African, Coloured and Indian) contractors to ultimately become main contractors on the roads agency’s road construction and maintenance projects.

SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza, introduced the Contractor Development Programme (CDP) to industry players in Bloemfontein and Welkom. 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 R1.5 million and R3 million.

Addressing the Contractor Development Programme event in Bloemfontein, Ms Memeza said that by investing in the development of contractors, SANRAL is aiming to empower black businesses, especially those from underrepresented groups such as women, youth, persons with disabilities and military veterans. SANRAL aims to create an environment where contractors participating will obtain continuous work through a competitive process.

“SANRAL wants emerging contractors to thrive. Our Contractor Development Programme is a vital step toward levelling the playing field, ensuring that opportunities for growth and development are accessible to all,” said Ms Memeza.

“By prioritising these targeted groups, SANRAL is contributing to the transformation of the construction industry and creating opportunities for meaningful economic participation.”

Ms Memeza added: “The strength of our infrastructure lies in the capabilities of our contractors. SANRAL’s commitment to contractor development reflects our belief that by empowering black businesses, we are not only enhancing our projects but also contributing to economic stability and community upliftment.”

The Contractor Development Programme also 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.

“At SANRAL, we understand that successful projects begin with skilled hands and educated minds. Our Contractor Development Programme is designed to equip emerging contractors with the tools, knowledge and support they need to excel in a competitive industry, fostering a culture of excellence in construction,” said Ms Memeza.

Tim Motshumi, from Jua Developers, expressed his appreciation and thanked SANRAL for this initiative and continued support of black contractors. “This presentation sounds like music to my ears. Please make sure that this programme is successful. I am very happy with what I have heard here today. SANRAL is respected for treating their subcontractors well and paying them on time. You are not perfect but if this programme presented here today succeeds, all contractors can benefit,” said Masenya.

Please click here or cut and paste in your web browser for a soundbite from Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer: https://we.tl/t-G4HpiSun8S

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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.

SANRAL embarks on a Contractor Development Programme in Cape Town

MEDIA ALERT

SANRAL embarks on a Contractor Development Programme in Cape Town

Western Cape, 22 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) is introducing its Contractor Development Programme (CDP) to construction companies in Cape Town on Wednesday, 23 October 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: Wednesday, 23 October 2024
Time: 10:00 am
Venue: Durbanville Conference Centre

RSVP:
Melany Kühn on 078 8877 004 or melany.kuhn@fticonsulting.com

or Ludwe Ngoma on 082 785 3840 or ludwe.ngoma@fticonsulting.com

Transport Minister Barbara Creecy to conduct oversight visit to Huguenot Tunnel

MEDIA ALERT

Transport Minister Barbara Creecy to conduct oversight visit to Huguenot Tunnel

Western Cape, 22 October 2024 – Transport Minister Barbara Creecy will on Thursday 24 October conduct an oversight visit to SANRAL’s Western Region, with a site inspection of the Huguenot Tunnel control room, toll plaza and soon to be constructed second tunnel, the North Bore.

SANRAL is upgrading the tunnel, in keeping with international safety standards as well as meeting the mobility demands of the significantly increased traffic volumes that come with urban development.

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

Members of the media are invited to join the Minister on the site inspection, followed by a media briefing and interview opportunities.

Date:               Thursday, 24 October 2024

Time:               10h00 – 12h00

Venue:            Huguenot Tunnel Main Control Centre

 

Members of the media attending the event are requested to confirm their attendance with Melany Kühn on 078 8877 004 or melany.kuhn@fticonsulting.com or Ludwe Ngoma on 082 785 3840 or ludwe.ngoma@fticonsulting.com.

To limit the number of vehicles, transport will be provided from the Toll Plaza, through the tunnel and back.

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Media Contact:

Collen Msibi

National Department of Transport Spokesperson

066 476 9015

Lwando Mahlasela

SANRAL Media Relations Manager

082 440 5305

 

 

SANRAL launches national Contractor Development Programme to support black contractors and further transform construction industry

MEDIA RELEASE

SANRAL launches national Contractor Development Programme to support black contractors and

further transform construction industry

Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer, introducing the Contractor Development

Programme aimed at supporting black contractors become main contractors.

https://we.tl/t-iFHRGPaFsR

Durban, 21 October 2024 – The South African National Road Agency SOC Limited (SANRAL) has launched a countrywide Contractor Development Programme to support and help black (African, Coloured and Indian) contractors to ultimately become main contractors on the roads agency’s construction and maintenance projects.

SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza, introduced the Contractor Development Programme (CDP) to industry players in Durban and Richard’s Bay today (Monday). 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.

Addressing the Contractor Development Programme event in Durban, Ms Memeza said that by investing in the development of contractors, SANRAL is aiming to empower black businesses, and especially those from underrepresented groups such as women, youth, persons with disabilities and military veterans.

“Through our Contractor Development Programme, SANRAL aims to create an inclusive environment where emerging contractors can thrive. This initiative is a vital step toward levelling the playing field, ensuring that opportunities for growth and development are accessible to all,” said Ms Memeza. “By prioritising these targeted groups, SANRAL is contributing to the transformation of the construction industry and creating opportunities for meaningful economic participation.”

Ms Memeza added: “The strength of our infrastructure lies in the capabilities of our contractors. SANRAL’s commitment to contractor development reflects our belief that by empowering black businesses, we are not only enhancing our projects but also contributing to economic stability and community upliftment.”

The Contractor Development Programme also aims to:

  • Create a unique platform for CIDB grades 5 to 7 to maximize 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.

“At SANRAL, we understand that successful projects begin with skilled hands and educated minds. Our Contractor Development Programme is designed to equip emerging contractors with the tools, knowledge and support they need to excel in a competitive industry, fostering a culture of excellence in construction,” said Ms Memeza.

Mr Wonder Jaca from the Black Business Federation expressed his appreciation for the commitment that SANRAL is showing towards broadening the entry of small black-owned enterprises into the sector and that the CDP is a good “opportunity for small players who are grade 5 to 7 to maximise their participation on SANRAL projects. Let us use those networks to empower those grades”.

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SANRAL embarks on a Contractor Development Programme in Bloemfontein

MEDIA ALERT

SANRAL embarks on a Contractor Development Programme in Bloemfontein

21 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) will be undertaking a national roadshow on its Contractor Development Programme (CDP) in Bloemfontein on Tuesday, 22 October 2024.

SANRAL is implementing the Contractor Development Programme with the intention to increase the capacity, equity ownership, sustainability, quality of work produced and improve the performance of grade 5-9 CE contractors registered with the Construction Industry Development Board (CIDB).

Through the Contractor Development Programme, SANRAL will create a unique platform for CIDB grades 5 to 7 to maximise participation on its projects. SANRAL will provide skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

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

Date: Tuesday, 22 October 2024

Time: 10:00 am

Venue: Bloemfontein, Lesley Monnenyane Hall, Cnr George Lubbe & Moshoeshoe Road

Satellite venue:

Welkom: Ferdie Meyer Hall, Welkom Eerstemyn, Welkom Central

RSVP:

Zenzele Bam on 072 891 5290 or Lesedi Mbipha on 066 287 0266 or sanral@fticonsulting.com

Transport will be provided for local media and interviews will be conducted on site.

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SANRAL urges caution amid disruptive rains in Eastern Cape

TRAFFIC ADVISORY

SANRAL urges caution amid disruptive rains in Eastern Cape

Gqeberha, 21 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) is advising motorists in the Eastern Cape to exercise heightened caution as severe weather conditions are expected to impact several municipalities.

The South African Weather Service (SAWS) has issued an Orange Level 6 warning for disruptive rain in Amahlathi, Buffalo City, Great Kei, Ingquza Hill, King Sabata Dalindyebo, Mbashe, Mbizana, Mnquma, Nyandeni and Port St Johns until Monday 21 October. A Yellow Level 4 warning is in effect for the Nelson Mandela Bay, Kouga, Sundays River Valley, Makana, Ndlambe and Ngqushwa municipalities, with rain expected to persist until Tuesday 22 October.

Mbulelo Peterson, SANRAL’s Regional Manager for the Southern Region, emphasised the need for road users to adjust their driving in response to the adverse weather.

“SANRAL urges all motorists to reduce their speed, remain vigilant and take extra care on the roads during this period of heavy rainfall. Our routine road maintenance teams are on standby to monitor any incidences that might affect our network. It is crucial for road users to stay informed about weather updates and road conditions in the affected areas,” said Peterson.

Motorists are encouraged to monitor weather forecasts and plan their trips accordingly to avoid unnecessary risk.

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Road closures on Gladys Manzi to New England Road upgrades

TRAFFIC ADVISORY
Road closures on Gladys Manzi to New England Road upgrades

Pietermaritzburg, 21 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) has announced temporary road closures for the installation of bridge beams as part of construction of the New Market Road overpass bridge.

Details are:

  • N3 Northbound closure: From 21:00 on Saturday, 26 October 2024 to 05:00 on Sunday, 27 October 2024
  • N3 Southbound closure: From 21:00 on Sunday, 27 October 2024 to 05:00 on Monday, 28 October 2024

The available alternative routes are:

  • N3 Northbound: Alternative via Market Road off-ramp then temporary on-ramp back onto N3 i.e. a minor deviation.
  • N3 Southbound: Alternative via Market Road off-ramp then R103 to Ashburton Interchange.

“The traffic accommodation team, with the assistance of the Road Traffic Inspectorate (RTI), have carefully planned the closures and will manage and monitor them 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 alternative routes affecting their commuter routings,” said Lowe.

“Light vehicle traffic, as well as emergency services and traffic management, are advised to make use of alternative routes. SANRAL apologises for any inconvenience caused and appreciates the public’s patience during the ongoing major road enhancements.”

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Taking Road Safety to the communities at Cliffdale and Peacevale, Durban

MEDIA RELEASE

Taking Road Safety to the communities at Cliffdale and Peacevale, Durban

Community of Cliffdale, Peacevale and Drummond listening attentively to presentations during the road safety campaign near the Key Ridge project upgrades

Pietermaritzburg, 20 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) conducted a safety awareness campaign at the African Congregation Church in Cliffdale to raise road safety awareness among the Cliffdale and Peacevale communities following the increased number of road accidents around the Key Ridge project upgrades.

Key Ridge continues to experience pedestrian fatalities, injuries and car accidents. This is a great cause for concern as there is still a long way to go until the upgrades on this strategic road, that is part of the N2-N3 project, is concluded.

Speaking at a road safety campaign event for local communities in Cliffdale and Peacevale, Nomcebo Cebekhulu, SANRAL’s Marketing Communications specialist in the Eastern Region, said: “When SANRAL puts up these contracts, it does so to improve the roads and in turn improve the lives of the people around, not to hinder them. We appeal to all community members to respect the rules of the road for their own safety and the safety of others. Any loss of life is regrettable. Take all necessary precautions when approaching the massive construction in the vicinity of Key Ridge.”

The road safety event informed communities about the dangers of crossing prohibited areas and the importance of adhering to the prescribed speed limits, especially during construction, and encouraged them to observe safety signs erected around the construction sites.

Ntokozo Khoza, of the eThekwini Transport Authority, added to SANRAL’s plea and encouraged the community to stay safe. He said, “The important thing to note is that pedestrians are not allowed on the national road. Our local stats show that every day at least two people are killed on the road in eThekwini, with pedestrians making up most of that number. We wish to reduce our accidents by half by 2030, and this will take a collaborative effort between us all.”

Makgera Raphalu, a safety officer of construction company WBHO, reiterated the plea made to pedestrians by sharing stats of incidents that have occurred since the commencement of the project. “We’ve had 140 accidents in Key Ridge so far and nine fatalities since the start of the project, one and half years ago. Crossing the freeway is not allowed. There are designated areas pedestrians can use when crossing the road.”

Lindelihle Zikalala, SANRAL’s Road Incident Management System coordinator, asked the community to adhere to all the safety messages and to be careful when accidents occur near construction sites.

“We must have an understanding of what is expected of us regarding safety and that we do as advised. People have a habit of rushing to accident scenes without knowing if any of the vehicles involved carries harmful materials,” he said.

Speaking on behalf of the community, Ward 103 Councillor Linda Mchunu welcomed the warnings and encouraged community members to try harder to keep themselves and others safe. “We welcome the opportunities brought by SANRAL and the safety initiative to help us see the dangers on the road. For me, this is service delivery. I ask for the people present today to pass it on to others at home.”

Closing off the session, Durban Metro Police’s Captain Dube said, “In the time we have spent here, there is a lot that we could have done out there, but I’m here to talk to you, the community, because you’re still alive. SANRAL is doing this campaign because they want you to be safe. Stop disobeying the rules of the road. Speed kills. Road safety is a collective responsibility, and we all must play our roles, pedestrians and motorists. Make sure your vehicle is roadworthy.”

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SANRAL embarks on a Contractor Development Programme in eThekwini

MEDIA ALERT
SANRAL embarks on a Contractor Development Programme in eThekwini

20 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) will beundertaking a national roadshow on its Contractor Development Programme (CDP) from 21

October to 7 November 2024.SANRAL is implementing the Contractor Development Programme with the intention to increase the capacity, equity ownership, sustainability, quality of work produced and improve the performance of grade 5-9 CE contractors registered with the Construction Industry Development Board (CIDB).

Through the Contractor Development Programme, SANRAL will create a unique platform for CIDB grades 5 to 7 to maximise participation on its projects. SANRAL will provide skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

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

Date: Monday, 21 October 2024

Time: 10:00 am

Venue: The Coastlands Durban West

Satellite venue:

Richards Bay: uMhlathuze Local Municipality, Civic Centre

RSVP:

Zenzele Bam on 072 891 5290 or Lesedi Mbipha on 066 287 0266 or sanral@fticonsulting.com

Transport will be provided for local media and interviews will be conducted on site.

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SANRAL refutes claims of ‘creative accounting’ and ‘hoarding’ cash

MEDIA STATEMENT

SANRAL refutes claims of ‘creative accounting’ and ‘hoarding’ cash

Pretoria, 18 October 2024 – The South African National Roads Agency SOC Limited (SANRAL) has dismissed as “mischievous and misleading” various claims that its financial records are incorrect.

SANRAL spokesman Vusi Mona says the national roads agency’s financial statements were diligently prepared in line with the best accounting practices and stressed that the Auditor-General of South Africa (AGSA) had signed off on SANRAL’s 2023/24 financial statements with an unqualified audit report.

Responding to a statement and media interviews by the Organisation Undoing Tax Abuse (OUTA), as well as an article in the Daily Maverick, Mona said various claims by OUTA and the media house were not based on facts and could have been clarified if either of the two parties was genuinely interested in understanding SANRAL’s position.

Mona said it was incorrect for OUTA to make the claims that it did without at least seeking clarification from the national roads agency. “SANRAL is a public entity which is proud to be delivering world-class road infrastructure in support of our country’s economy and ultimately its people. It is unhelpful for civil society organisations and/or media outlets to cast aspersions on our accounting practices without so much as providing us the opportunity to clarify any issues they may have. That leads us to conclude that these comments circulating in the media are mischievous and intentionally aimed at misleading the public.”

“SANRAL wants to place on record for the South African public some important facts that easily clarify questions raised in the media, without the relevant organisations seeking SANRAL’s comment,” said Mona.

“Regarding our reporting framework SANRAL wants to clarify that until the year ended 31 March 2023, SANRAL reported its revenue according to International Financial Reporting Standards (IFRS). The IFRS reporting framework was used by SANRAL from 2007/08 and that decision was backed by permissions from the National Treasury. This was done because SANRAL had

bonds which were listed on the Johannesburg Stock Exchange (JSE), for reporting comparability purposes with other State Owned Entities (SOEs) that were also listed on the JSE, and also had loans which had IFRS as part of the requirements.”

“In South Africa, the Accounting Standards Board (ASB) is mandated by the National Treasury (NT) to release reporting standards in South Africa for the public sector. The reporting standards are known as Generally Recognised Accounting Practice (GRAP) and Interpretation of GRAP (IGRAP), which is where a standard is clarified by the ASB so that users and preparers of AFS do not use their own interpretation of a particular standard which is being interpreted. In 2018, the ASB issued Directive 12 titled ‘The selection of appropriate reporting framework’. The aim of the directive was to direct SOEs, government departments and other State-like institutions to report on IFRS if they are commercial entities (meaning their purpose is largely profit driven) and on GRAP where they are largely grant funded from the fiscus. SANRAL is largely grant funded and therefore the reporting framework per Directive 12 should have been GRAP. However, SANRAL was given permission to continue with IFRS until 31 March 2023. This permission was granted to allow ASB to issue financial instruments related standards, for which there were no equivalent GRAP standards. Once these were developed by ASB, NT withdrew the permission to use IFRS as a reporting framework and SANRAL was instructed to apply GRAP from 1 April 2023. The move from IFRS to GRAP had an impact on the reported figures for the current year and prior years, which meant that certain line items on the statement of Financial Performance and Position had to be restated,” said Mona.

Furthermore, regarding e-toll revenue treatment, it is important to note that SANRAL applied the following GRAP and IGRAP standards to recognise its revenue;

GRAP 9 titled “Revenue from exchange transactions”,

IGRAP 1 titled “Applying the Probability Test on initial Recognition of Revenue”, and

IGRAP 20 titled “Accounting for Adjustments to Revenue.”

“The requirements of GRAP standards differ from IFRS in that they require statutory revenue to be recognised as revenue with a corresponding statutory receivable as the entity has an obligation to collect all the statutory revenue. This has resulted in the recognition in revenue of amounts that were previously not recognised under IFRS as the transactions did not meet the requirements of the related standards. The receivables are accounted for in accordance with GRAP 104.

GRAP requires SANRAL to recognise all e-toll fees billed regardless of collectability, resulting in higher e-toll revenue being reported in the 2023/24 financial year and 2022/23 revenue being restated. See Note 2 of the Annual Report for more details on the policies and treatment related to adoption of GRAP. However, the e-toll revenue was also impaired, as a result of collectability issues as explained in expenses under the statement of Financial Performance. Thus, the e-toll revenue is fully recognised as revenue and then impaired in expenses, leaving a small net amount of collectable or realisable revenue.

Hoarding of unspent cash (non-toll)

Mona said the R42 billion underspending on SANRAL’s non-toll portfolio was primarily due to project commitments. “SANRAL’s operational and capital expenditure projects span multiple years, with operational expenses largely involving Routine Road Maintenance (RRM) covered by 134 contracts across the entire SANRAL network. These contracts are valid for five years. Similarly, capital expenditure projects are executed over a period of three to five years.

“As indicated above, the non-toll segment has project commitments amounting to approximately R67.94 billion by the end of the 2023/24 fiscal year. This includes R14.24 billion for the 2024/25 financial year and R53.7 billion projected for 2025/26 and beyond. This implies that the R42 billion is not sitting unused but is allocated to paying for contracts and suppliers related to road maintenance and construction projects,” said Mona.

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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