The South African National Roads Agency SOC Limited (SANRAL) has awarded a whopping 323 tenders to the value of R59 billion in the financial year that has just concluded. This is significantly up from the previous year, which saw the agency make awards to the tune of R22 billion.
Over and above the tenders awarded by 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 31 March, 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.
Through these awards the roads agency continues on a positive trajectory, 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 squarely 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 a three-year period, effectively teaching them to submit compliant, competitive and profitable tenders.
