Friday 19 November 1999
The Minister of Transport, Abdulah Omar, and the chairperson of the South African National Roads Agency Bean Bornheimer today jointly announced that Bakwena Platinum Corridor Consortium was the preferred bidder for the R2.6 billion contract to upgrade a section of the N1 North of Pretoria; the N4 west from Pretoria to the border between South Africa and Botswana.
Omar said that negotiations to conclude the concession contract will now start between the South African National Roads Agency (the Agency) and Bakwena Platinum Corridor Consortium (BPCC). He thanked the other shortlisted consortium, Tsela Yabatho Concessionaire, for their commitment to the project.
The BPC Consortium comprised of construction groups Grupo Dragados (Spanish), Murray & Roberts, Concor Holdings, Wilson Bayly Holmes-Ovcon, Bafokeng Civils, Rainbow Construction, Sakhizwe - Con Roux, Balemi Civils and SMME Contractors together with Keeve Steyn, Stewart Scott, Simmer, Biggar & Associates, Sanker, Govender & Associates, Goba, Moahloli & Associates, P D Naidoo & Associates and Paruk Consulting Engineers.
The other bidder Tsela Yabatho Concessionaire, comprised of construction groups Grupo Ferrovial SA (Spanish), Stocks & Stocks Ltd, Group 5 (Pty) Ltd, SASCC - Labor, LET, H & I, Rumdel, Raubex, Growcon, Leswika & Womaans Investments together with SNA Civil and Development Engineers, Jeffares and Green, Bradford Conning, Ndodana Becker, Letaba Consultants, Nathoo Associates, Tifflin Purchase & Associates and Ulassi Nankoo & Hausa Associates.
This is the third major Build, Operate and Transfer (BOT) road project to be undertaken in South Africa. BOT is a mechanism for implementing projects which relies upon the private sector to raise funds for public projects, to build and operate them at a profit, and then hand them back to the State at the end of the contract period. The ownership of the road remains with government while its management is undertaken by the private sector.
Omar welcomed the progress in this major road project not only as another significant public-private partnership with the private sector to fund infrastructure development, but also the innovative way in which it will be financed.
"The successful bidder on the Platinum Toll Road will improve the existing road and build new sections, operate them and return the infrastructure back to government in good condition and free of debt after the concession period, " he said.
The contract is for the construction, financing, operating and maintenance of 380 km from Warmbaths (Northern province) via Pretoria to Skilpad Nek (North-West Province, border between South Africa and Botswana as a toll road and the development of associated facilities under a 30-year concession contract to be managed by the Agency.
New work along the route includes the construction of a dual carriageway between Dooringpoort and Akasia, and new road sections between Akasia to Brits, Buffelspoort to Rustenburg and the Rustenburg Bypass. Maintenance and rehabilitation work will be undertaken on the existing road and will also include all future upgradings.
The construction of this road will shorten the trip between Johannesburg and Walvis Bay by approximately 500 km and link the east coast of Southern Africa in Mozambique to the west coast of Southern Africa in Namibia.
It is anticipated that construction will start in late 2000. Initial construction will take approximately three years after which the road will be periodically upgraded over the 30-year concession period to comply with pavement and level of service requirements.
Tender documents for the project were released on 28 October 1997. A compulsory site inspection was held on 20 and 21 November 1997, which was attended by the three pre-qualified tenderers. Tenders closed at 11:00am on 29 May 1998 and the bids were recorded in public at the Agency, in Celtis Plaza, Hatfield, Pretoria.
Tenderers were then invited on 11 and 12 August 1998 to make a presentation to the full evaluation team on their submissions. The two bidders who remained after initial evaluations, submitted their best and final offers on 26 July 1999. The evaluation team comprised of national and international experts in the fields of environmental management, entrepreneurial development, engineering, finance and legal service. Their recommendations went to this Agency's board, who passed it on to the Minister of Transport for the final decision.
As part of the criteria for their bids, the consortiums were required to stipulate what training and skills-transfer programmes would be undertaken in respect of the creation of job opportunities for developing contractors and SMMEs. The emphasis was not only on vocational training but also supervisory and management training and the transfer of construction-related skills with set targets to ensure compliance with tender requirements that are in line with government's growth objectives.
It's anticipated that over 15,000 jobs will be created and over 300 SMMEs will benefit from this project.
Omar said that both BPCC and TYC proposed impressive partnerships for the implementation of the project. He said that the approach adopted by both consortia represented a significant new departure in the promotion of co-operative ventures between small and large enterprises, re-affirming in practice government's commitment to the principles of affirmative action and economic empowerment of previously disadvantaged sectors of the community.
CEO of the Agency Nazir Alli said: "The goal of broad economic empowerment will be realised through spending targeted at equity participation, the development of emergent entrepreneurs, skills transfer in the field of civil engineering, project management, literacy, community participation and the implementation of wider social development programmes."
Issued by Mike Mabasa: Media Liaison Officer to the Minister of Transport