Media Release
SANRAL announces new R2.2 billion project and Contractor Development Programme for N2 Wild Coast Road
Flagstaff, Eastern Cape, 14 August 2024 – The Chief Executive Officer (CEO) of the South African National Roads Agency SOC Limited (SANRAL), Reginald Demana, has launched a new R2.2-billion construction phase of the flagship N2 Wild Coast Road (N2WCR) in the Eastern Cape.
The SANRAL CEO today (Wednesday) concluded a three-day visit to inspect progress on the new N2WCR, during which he introduced the contractor for Package Four, WBHO-Edwin Construction Joint Venture, to the community in Lusikisiki. Demana also visited the construction sites at the Msikaba and Mtentu mega-bridges, as well as Package Five, a 17km stretch of road between the two mega-bridges. He was accompanied by the Chief Construction and Maintenance Engineer, Dumisani Nkabinde, as well as the Regional Manager for the Southern Region, Mbulelo Peterson and the project management teams.
Demana’s announcement of the commencement of Package Four – construction of the N2WCR Section 20 between the Lingeni Intersection (km 15.40) and the Msikaba Bridge (km 33.02) valued at R2.2bn – is another major milestone for the project. In addition to the two mega-bridges, there are seven major construction packages on the N2WCR.
Demana says the N2WCR is making steady progress and, while the long-term benefits will be realised only once construction is completed, the project has already had a massive socio-economic impact on local communities.
“Construction on the N2 Wild Coast Road is advancing and the progress is visible, with significant milestones having been reached already. On a project of this scale, stretching for 110km across the Eastern Cape, there will no doubt be challenges such as the complexity of the engineering but it is clear that we are making steady progress,” said Demana.
“The main reason for the N2 Wild Coast Road – and why our government deliberately made a decision to invest about R20 billion in this part of the country – is because it’s a major connectivity road. It connects four provinces, that is the N2 starting in Cape Town in the Western Cape, running into the Eastern Cape and then on to KwaZulu-Natal and finally into Mpumalanga, which then further connects to neighbouring Mozambique. That illustrates the importance of the N2 Wild Coast Road, which is currently under construction.”
“The significance of the investment here in the Wild Coast is that it reduces travel distance by 80km between Post St John’s and Port Shepstone. It also reduces the travel time by up to two hours, depending on the type of vehicle you drive. Obviously, with shorter travel distances it reduces transport costs or logistics costs. It’s also flatter and therefore safer. We believe by doing that, we are enhancing the connectivity and also enhancing the ability to trade more efficiently.
“Obviously where we build projects, there is an immediate benefit in the form of jobs that we create. On the N2, we estimate that we will create about 8,000 to 9,000 full-time equivalent jobs, with between 22,000 and 28,000 indirect jobs. That amounts to a lot of immediate benefits.”
The SANRAL CEO received a detailed briefing on the Msikaba Bridge, which is advancing well with the inverted-Y pylon structures having exceeded 90% toward completion on both ends of the bridge. Construction of the bridge deck is anticipated to conclude in the first quarter of 2025, with the cable installation expected within the same period. The project has suffered some delays due to the unavailability of cable in the local market which required that it be imported from overseas suppliers, as well as challenges related to the complexity of the engineering.
To date, the Msikaba Bridge contract has created opportunities for 44 local suppliers, 48 service providers and 61 subcontractors to the value of R665.6 million. Over R115 million in wages has been paid, while R76 million has been spent on generic and community training to fulfil the specific needs of the community.
Construction of Package Four is set to commence in January 2025 after a four-month mobilisation period and is anticipated to create 400 jobs to the value of R176 million (8% of the contract value). Thirty-five percent of the contract value (R700 million) has been set aside for Contract Participation Goals (CPG) to ensure participation by local targeted enterprises.
Package 5, the construction of the road connecting Msikaba Bridge (North bank) to Mtentu Bridge (South bank), awarded to WBHO-H&I Joint Venture for R2.5 billion, commenced construction in April 2023 and is anticipated to conclude in the last quarter of 2027.
The contract has a Contract Participation Goal (CPG) value of R769 million, R2.6 million for training, R8 million for community development projects and R5.5 million for skills development for targeted enterprises. To date, the project has generated 445 job opportunities and appointed 41 targeted enterprises.
On the Mtentu Bridge project, R250 million has been spent on the contract to date and 248 local labourers have been employed. Construction of the access roads to the piers, third trial blasting operation and geotechnical investigative drilling for Pier 2 and Pier 11 is ongoing.
The CEO concluded his programme with a roundtable discussion with the Wild Coast Corridor Business Chamber where issues related to meaningful economic transformation were raised as a major concern across the N2 Wild Coast Road contracts. SANRAL was urged to intensify monitoring and evaluation on the ground to ensure that the impact of its transformation agenda is fully realised.
In addition to SANRAL’s Contractor Development Programme, which is in its final approval stages, SANRAL’s Regional Manager for the Southern Region, Mbulelo Peterson, said that Packages 1, 2 and 3 of the N2WCR were in design and would soon be implemented, ensuring more opportunities for locals.
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