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Roads agency more than doubles spend to R59bn

Home Business Management Facilities Management Roads agency more than doubles spend to R59bn

THE South African National Roads Agency SOC Limited (SANRAL) awarded 323 tenders to the value of R59 billion in the financial year that ended on March 31. This is a significant increase compared to the previous year, in which it awarded tenders worth R22 billion.

Over and above the tenders awarded by the SANRAL Head Office and its various regional offices, 12 contracts above R750 million were awarded after the Board reviewed the submissions as part of its oversight role. The total value of these is R28 billion, of which the last four, awarded on March 31, are split between KZN and the Eastern Cape, with award letters currently being finalised. The SANRAL Board notes and reviews any tender with a value of R750 million and above.

In line with SANRAL’s commitment to economic transformation, at least 30% of the contract value of each tender will be subcontracted to small, medium and micro enterprises (SMMEs). This effectively ensures that nearly R18 billion minimum will go to SMMEs located in the various communities in which the projects will be implemented.

SANRAL says that through these awards the roads agency continues to drive economic recovery and it should be seen as part of the broader national effort by government to invest in economic infrastructure.

Such significant awards also enable SANRAL to respond to the triple challenge of poverty, unemployment and inequality across South Africa, as large-scale job creation, skills development and knowledge transfer are key elements of economic development.

SANRAL furthermore remains driven to break down monopolies and ensure meaningful transformation that changes people’s lives for the better. “Our transformation efforts go beyond facilitating access to black-owned businesses. We want them to participate, grow and ultimately prosper,” said SANRAL Board chairperson, Themba Mhambi.

To this end, SANRAL has embarked on an extensive training and capacity-building campaign, that targets more than 40 000 SMMEs over three years, effectively teaching them to submit compliant, competitive and profitable tenders.

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