SANRAL to pump billions into road projects countrywide

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The South African National Roads Agency Limited (SANRAL), said the Eastern Cape will benefit from 24 construction projects worth an estimated R3.8 billion.

This is part of SANRAL’s plan to inject around R50 billion into the country’s economy as it evaluates 96 tenders worth R35 billion, while 86 contracts worth R15 billion have already been awarded.

• 34 tenders in the Northern Region (Gauteng, North West, Limpopo and Mpumalanga) worth R16.5 billion;
• 24 tenders in the Southern Region (Eastern Cape) worth R3.8 billion;
• 12 tenders in the Western Region (Western Cape and Northern Cape) worth R2 billion;
• 12 tenders in the Eastern Region (KwaZulu-Natal and Free State) worth R11.7 billion; and
• 14 tenders at Head Office, worth R839 million.

 SANRAL’s Chief Executive Officer (CEO), Reginald Demana, said this was a significant achievement given the procurement challenges the roads agency faced in 2023/24.

“The awarded contracts, worth R15 billion, as well as the tenders worth R35 billion – which are currently at various stages of evaluation – are being adjudicated in terms of the Interim PPP. This was adopted towards the end of 2023 after countrywide consultations with interested and affected stakeholders,” he said.

“Furthermore, this progress is indicative of improved stability at an operational level. On 1 July 2024, SANRAL appointed a Chief Procurement Officer. We are determined to improve on the achievement of R51 billion worth of tenders awarded in the 2022/23 financial year.” 

Demana said SANRAL was pushing ahead to put out even more work, with a further R1.8 billion worth of tenders to be advertised in the coming days and weeks.

SANRAL said major projects currently in construction continue to progress rapidly, with significant improvements to key road infrastructure and even more significant economic impact at national, regional and local level.

“Scores of people have benefitted from job creation, skills development and tools enabling them to carve a pathway out of poverty.”

SANRAL’s major projects in the Eastern Cape include:

• N2 Wild Coast Road – The R20 billion N2 Wild Coast Road (N2WCR) project is picking up speed with four major contracts underway, including Msikaba Bridge, Mtentu Bridge, the construction of the road linking the Msikaba and Mtentu bridges, and the road leading from Lingeni Intersection to Msikaba Bridge. Earlier in August, SANRAL announced the imminent construction of the R2.2 billion road from Lingeni village to Msikaba Bridge anticipated for early 2025

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. On the Mtentu Bridge project, R250 million has been spent to date with 248 local labourers employed.

• R56 Matatiele – The improvement of the R56 between Matatiele and the KwaZulu-Natal boundary is progressing well. Construction works on this R1.2 billion contract are being carried out over the entire 39km. The culverts and minor structure are ahead of schedule while earthworks are on track. A total of 250 workers sourced locally are currently on site and this number is expected to increase to 400 as the project continues. So far, 25 targeted enterprises have been engaged.
• N2 KwaBhaca to Ngcweleni River – The R1.2 billion improvement contract on the N2 between KwaBhaca (formerly Mount Frere) and Ngcweleni River is progressing well. Service and access roads form part of this contract.