Economy to get R50bn boost from Sanral

The South African National Roads Agency SOC Limited (Sanral) has announced plans to inject over R50 billion into SA’s economy through new tenders. The SOE is currently evaluating 96 tenders valued at R35 billion, with an additional 86 contracts worth R15 billion already awarded since the beginning of the 2024/25 financial year on 1 April 2024.

The tenders currently under evaluation are distributed across several regions: 34 tenders worth R16.5 billion in the Northern Region, 24 tenders valued at R3.8 billion in the Southern Region, 12 tenders amounting to R2 billion in the Western Region, and 12 tenders totalling R11.7 billion in the Eastern Region. Additionally, 14 tenders worth R839 million are being evaluated at Sanral’s head office.

Sanral CEO, Reginald Demana believes this development is a significant milestone, especially after facing procurement challenges in the 2023/24 financial year.

“This achievement is a testament to Sanral’s commitment to economic recovery for the road construction sector and South Africa at large and follows a significant setback to our procurement processes in 2023/24 when legal challenges to Sanral’s Preferential Procurement Policy (PPP) brought all tenders to a halt,” said Demana.

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The contracts already awarded, along with those under evaluation, are being processed under the interim PPP, which was adopted in late 2023 after extensive consultations with stakeholders, Demana added.

Sanral says it plans to issue additional tenders valued at R1.8 billion in the coming weeks. The agency’s efforts will focus on maintaining the national road network and building new infrastructure while also leveraging state spending to create economic opportunities.

Maintenance remains a priority, with new five-year routine road maintenance (RRM) tenders on the horizon.

Currently, 12 major projects are underway, including a R4 billion upgrade and expansion of the Huguenot Tunnel, a R2 billion upgrade of Cape Town’s N2 and a R1.2 billion improvement contract on the N2 between KwaBhaca (formerly Mount Frere) and Ngcweleni River.

This article was republished from Moneyweb. Read the original here.