Signing of the R2.5 billion N3 Concession Contract By the Minister of Transport, Mac Maharaj
Johannesburg, 27 May 1999
Good morning Ladies and Gentlemen. It is always satisfying to witness the next milestone in a major infrastructure project.
Last weekend I opened the second toll plaza on the N4 to Maputo and today we sign the concession contract for the N3.
A project on the scale of the N3 contact, a 30-year concession on a job worth over R2,5 billion, is a major investment in the future of our country.
The infrastructure of any nation lays the foundation for its overall development. And investment in national infrastructure expresses the economic, social, political and cultural vision of a nation.
Today we are seeing a vision start to turn into a reality.
The need for major work on the N3 between the industrial heartland of Johannesburg and our major harbour in Durban is undisputed as that road is in any way the main artery that pumps our economy.
This why I particularly welcomed the public-private partnership on which this job, the second major Build Operate and Transfer contract we have undertaken in my term of office.
The private sector also saw the need and the potential of this contract to extend, upgrade and maintain the 420kms on the N3 from Heidelberg in Gauteng to Cedara in KwaZulu-Natal.
In a BOT contract, the ownership of the road remains with government while its managed by the private sector.
The stream of income through, for example tolls, allows for the maintenance and growth of the facilities and services without waiting for government to find the funds from all the other pressing social needs in our country, such as education and primary health care.
It is an undisputed fact that government does not have the money for large infrastructure projects. We have inherited an infrastructure backlog of more than R7 billion.
The "user-pay" principle is being increasingly used in our country, and around the world, because it ensures a reliable and speedy delivery of infrastructure and services.
User pays means that the people who directly benefit from the improved infrastructure and services pay for the use of them.
This contract also plays a greater role in the economy of this country as it will take on the State's existing debt of R1,3 billion on the road as well as improve existing and build new sections, operate them and return the infrastructure back to government in good condition and free of debt after the 30-year concession period.
New work along the route includes the construction of a dual carriageway between Villiers and Heidelberg. Maintenance and rehabilitation work will be undertaken on the existing toll roads between Cedara and Keeversfontein and between Warden and Villiers, and will also include all future upgradings.
Also in the contract is the proposed construction of a section of road between Keeversfontein via De Beers Pass to Warden, which will shorten the route between Gauteng and Durban by 13 km.
It is anticipated that construction will start in the first half of 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.
As part of the criteria for the tender contract (as with all contracts awarded by the Department of Transport, and by the agencies and parastatals that report to me) are training and skills-transfer programmes for the creation of job opportunities for developing contractors and SMMEs.
The emphasis is 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 25 000 jobs will be created and over 500 SMMEs will benefit from this project.
This project is therefore not only an investment in infrastructure, but also an investment in the people of our country.
I would like to congratulate both parties: N3TC (the N3 Toll Road Concession Company) that won the tender, and the National Roads Agency, who has steered and engineered this project over the past three years.
I gives me great pleasure to call on Nazir Alli, the CEO of the National Road Agency, and Eugene Erasmus of the N3TC to sign this contract on behalf of our government.
Issued by:
Didi Moyle
PA and Media Liaison Officer to the Minister of Transport
Pretoria: (012) 309 3131 (phone) or (012) 328 3194 (fax)
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email: moyle@mweb.co.za
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