Blog

MEDIA RELEASE

SANRAL shares road construction investment plans at Eastern Cape Investment Conference

Eastern Cape, 17 November 2022 – The South African National Roads Agency SOC Limited (SANRAL) has invested more than R8bn in roads construction projects in the Eastern Cape Province over the past three years, said Marlize Nel-Verwey, SANRAL Southern Regional Project Manager.

She was speaking at the inaugural Eastern Cape Investment Conference which took place in East London yesterday (Wednesday). SANRAL was invited to participate in the conference because the roads agency is one of the province’s key investors, with road infrastructure projects and a national road network that continues to be a catalyst for socio-economic development in the province, providing much-needed job opportunities and developing skills in the Eastern Cape.

“Over the past three years alone, SANRAL has invested just over R8bn in the Eastern Cape, with about 82% of our projects benefitting majority black-owned companies. We also intend to spend just over R60bn on road infrastructure in the province over the next five years,” said Nel-Verwey.

SANRAL Board Chairperson Themba Mhambi said the Eastern Cape Province is a major province on SANRAL’s portfolio largely because the province has been ignored historically when it comes to investing in roads infrastructure.

“At SANRAL we link infrastructure development to economic development in our country. We see ourselves as not only responsible for building and maintaining the national road network, but we also extend our mandate to be one of a catalyst for economic growth and development. The developments that SANRAL has undertaken in the Eastern Cape are linked to other secondary roads in the province and we continue to ensure integration and synergy with local and provincial roads that do not necessarily fall within our mandate,” said Mhambi.

The investment conference was a unique opportunity for the Eastern Cape Provincial Government, working together with its socio-economic partners, to explore investment opportunities in the province.

Welcoming SANRAL’s investment in the province, Eastern Cape Premier Oscar Mabuyane mentioned the roads agency as one of the province’s 11 new investors who are joining the provincial economy with a combined investment value of R46.5 billion.

“We welcome these new investors to our Province. Their contribution will certainly make a huge difference in our provincial economy and create jobs for our people. We implore the host municipalities to take good care of these new investors,” said Mabuyane.

“Over the past three financial years the provincial government invested over R22.7 billion on social and economic infrastructure. Over the next three financial years we project that our investment on 2

social and economic infrastructure will have accumulated to R24.6 billion, while local government will invest R21.5 billion for social and economic infrastructure in our province.”

“All this infrastructure spending supports the provision of education, health, human settlements as well as building new and maintaining the existing transport network in the province. We do this because we appreciate the strategic and catalytic role that public sector investment plays to crowd in private sector investments,” added Mabuyane.

SANRAL’s projects in the Eastern Cape Province are at various degrees of completion: some are completed while others are under construction, under the tender and evaluation stage, or in the planning phase for the current financial year.

Some of the key projects that have been completed include the special maintenance project from the R75 national road in Jansenville to the R63/R75 intersection; this project amounted to R125 million. In the Buffalo City Metro, the Breidbach and Belstone interchanges project on the N2 national road is currently under construction at a total cost of R437m, and the improvement of the N2 Green River to King Williams Town project at a total cost of R500 million is also under construction.

The Mtentu Bridge contract on the N2 Wild Coast Road (N2WCR) project, valued at R4.05billion, and the R56 Matatiele project, valued at R1.2 billion, have recently been awarded. There are also various community development projects in parts of the province currently been undertaken during this financial year.

MEDIA STATEMENT

SANRAL Tenders – Fact vs Fiction

Pretoria, 16 November 2022 – The South African National Roads Agency SOC Limited (SANRAL) is disturbed by repeated efforts by some media houses to discredit the recent award of four tenders on key infrastructure projects. Notwithstanding SANRAL’s efforts to address media enquiries with substantive facts, some media houses continue to present fictitious narratives to the public.

SANRAL would like to assure the South African public that proper processes were followed in the award of the four tenders in question. The tenders were adjudicated by the Development Bank of Southern Africa (DBSA) in a fair and transparent process where any and all eligible South African companies had the opportunity to submit a compliant tender.

Allegations that China State Construction Engineering Corporation (CSCEC), one of the JV partners in the Mtentu Bridge contract, has a 1CE Construction Industry Development Board (CIDB) Grading, are baseless and therefore fictitious.

Fact: CSCEC’s CIDB grading is 9CE, which is a key requirement needed for companies to bid for a contract of this magnitude. Furthermore, CSCEC’s CIDB registration is valid until 21 February 2023.

Allegations that Mota Engil Construction South Africa (MECSA), the other partner in the JV for the construction of Mtentu Bridge, who also has a 9CE CIDB Grading, is a deregistered entity, are also fictitious.

Fact: MECSA’s CIDB registration is valid until 11 March 2024.

Vusi Mona, SANRAL General Manager, Communications and Marketing said: “We have always welcomed industry watchdogs and active citizenry, designed to hold government and its agencies to account. The level of witch-hunting we are seeing now, however, is destructive and counter-productive, particularly at a time when SANRAL is spearheading economic recovery through prioritised public infrastructure upgrades.”

Added to that, the opinion reportedly expressed by SAICE President, Marianne Vanderschuren, that foreign companies are coming into South Africa to do work because it is “almost impossible” for South African contractors to work in the country due to construction mafia issues, is not helpful.

SANRAL has several major construction projects in progress, where a concerted effort is made to prioritise stakeholder relations, with all stakeholders, both those who are disgruntled and those who openly laud SANRAL for the economic and skills development benefits its projects bring to South Africa.

In the last financial year alone, SANRAL provided 1,684 SMMEs with work on construction, rehabilitation and maintenance projects. The total amount earned through these contracts was R2,330,241,038. Black-owned SMMEs derived significant benefit, accounting for 88.05% of contracts awarded and 89.6% of the value of the work performed.

The law prescribes that foreign companies are free to conduct business in South Africa, as much as there are South African construction companies doing business in other parts of Africa and the world.

“We are constantly reminded that South Africa and Africa should take up its place in the global village and by extension, that also means welcoming the input of other countries in our quest to develop South Africa’s knowledge economy,” said Mona. “We trust that those who are unhappy with the outcomes of a fair and transparent process, in line with our laws and regulations, will be guided by the facts and not make things up to suit their agendas.”

TRAFFIC ADVISORY

THE RECONSTRUCTION OF THE SLOW LANE ON N3 SANCTUARY ROAD TO LINK ROAD

Pietermaritzburg, 11 November 2022 – The South African National Roads Agency SOC Limited (SANRAL) hereby informs road users that the reconstruction of the slow lane on the N3 from Sanctuary Road to Link Road will result in intermittent road closures.

“Due to the rainfall during the past month, the contractor was unable to move the barriers on the south-bound carriageway during the night. This is severely hampering the opening of the road so that the remaining works can be completed timeously,” said Thabiso Dladla, SANRAL’s Eastern Region Project Manager.

To maintain the safety of the workforce as well as all the road users, the following rolling closures of the road to a single lane will be implemented this Saturday, 12 November and Sunday, 13 November 2022:

• The road will be reduced to one lane for 30 minutes from 09h00 to load the barriers.
• Thereafter the road will be opened for two-lane traffic for 60 minutes while the barriers are being off-loaded off site and the truck returns to collect more barriers.
• This sequence will continue until midnight.
• The Road Traffic Inspectorate (RTI) will also assist in controlling the traffic.
• Should there be delays during the weekend, the sequence may also occur on Monday 14 November 2022.

The alternate route for possible use by light motor vehicles only during this period is as follows: Old Howick Road (R103) Motorists travelling to Durban can take the Cedara turn-off and drive along the R103 to join the N3 at the Armitage Road on-ramp.

All vehicles above 8-ton MAY NOT use the R103 and will have to factor in extra travel time.

“SANRAL would like to appeal to motorists to adhere to the warning signs and reduce speed when approaching the construction sites. Motorists are asked to adhere strictly to all the speed restrictions and to plan their trips accordingly,” said Dladla.

 

 

MEDIA RELEASE

Minister Mbalula marks the opening of N4 Karino Interchange in Mbombela

Mpumalanga, 7 November 2022 – Transport Minister Fikile Mbalula conducted the official opening of the South African National Roads Agency SOC Limited’s (SANRAL) R375-million Karino Interchange project on the N4 in Mbombela, Mpumalanga Province, on Friday, 4 November 2022.

The successful completion of the Karino Interchange demonstrates how public-private partnerships (PPPs) within the public infrastructure development space benefit road users and local communities through the construction and expansion of the national road network.

Minister Mbalula said the completion of the Karino interchange on time and within budget, demonstrates the immense value of partnerships between the government, the private sector and local communities.

“These partnerships enable us as government to deliver world-class infrastructure that enables economic activity and mobility for our people, which promotes regional integration and seamless cross-border movement,” he said.

“SANRAL has long been a pioneer in pursuing and sustaining successful PPPs which have delivered substantial dividends for the country over the years. Two of these are with concessionaires in Mpumalanga: the N1-N4 Bakwena Platinum Corridor Concessionaire and the N4 Trans African Concessions (TRAC).”

The agency is committed to supporting the development and participation of businesses owned by people in designated categories including black people, women, youth and people with disabilities. A total of R116.24 million was spent on 44 local subcontractors, while R22.34 million went to local labour which included 236 males, 42 females, 143 youth and one person living with a disability.

Mbalula expressed support from the National Department of Transport for SANRAL’s policies and interventions that ensure that the lives of the people where its national road network traverses, are changed through project participation opportunities both for local labour and SMMEs.

“SANRAL commits to subcontracting at least 30% to SMMEs in all its projects. In the case of the Karino Interchange project, this target was vastly exceeded, with 46.6% of the contract value going to local SMMEs. SANRAL has committed to ensuring that

at least 6% of the contract value is spent on local labour. This project has achieved 9%, with R22.34 million spent on local labour. This is an achievement we must encourage,” he said.

“Infrastructure is central to the economic reconstruction and recovery plan of South Africa. The Karino Interchange is part of the N4 Maputo Development Corridor which improves trade and stimulates economic development between South Africa and Mozambique.”

In addition to the Karino interchange, SANRAL is implementing various projects in Mpumalanga, such as the Moloto Road that inter-connects Gauteng, Mpumalanga and Limpopo provinces; the R23 national road in Lekwa District Municipality; and the R33 national road which crosses through Mkhondo and Msukaligwa Local Municipalities.

TRAFFIC ADVISORY

STOP/GO ZONES TO BE IMPLEMENTED ON THE N5

KZN, 7 November 2022 – Stop and go traffic accommodation will be implemented on the National Route 5 (N5) from Paul Roux to Vals River from today, the South African National Roads Agency SOC Limited (SANRAL) has said.

“Speed restrictions of 60km per hour will be applied at the work zones and the repairs are expected to be completed by end of March 2023,” said Lwanda Sigaji, SANRAL’s Eastern Region Project Manager. Motorist may make use of alternative routes or allow extra time when travelling on the N5.

“SANRAL would like to appeal to motorists to adhere to the warning signs and reduce speed when approaching the construction sites. We appeal to road users to plan their trips accordingly,” said Sigaji.