Fresh Produce Market now only 35% complete
This project has missed its expected completion date and the funds required to complete it appear to keep escalating.
The Mpumalanga International Fresh Produce Market is 35% complete with a total expenditure of R629,6 million.The budget estimated for the completion of the project is approximately R930 million, according to the Mpumalanga Department of Public Works, Roads and Transport (DPWRT).
The DA in the province said the project appears to be yet another failed undertaking. This operation was announced more than seven years ago; it has missed its expected completion date and the funds required to complete it appear to keep escalating. The cost of the market exceeded the initial estimates that were announced when the project was started.
In 2013 the Department of Agriculture, Rural Development, Land and Environmental Affairs estimated that the market would cost R1 billion over five years.
In 2015 MEGA said R2 billion would be required to complete it. In 2018, the agency approached the Industrial Development Corporation to fund the shortfall of approximately R1,2 billion. It is alleged that the project could stall again due to a lack of funding.
The provincial DPWRT is the implementing agent. This project was initially MEGA’s until last year when it was announced that the department would take over.
The agency has also postponed the completion date by three years. In February 2018, MEGA said the estimated completion date would be the end of 2019. However, in November 2018, it said it would be completed by early 2022.
The R629,6 million spent can be broken down into construction cost of R468,7 million and professional fees of R160,9 million. The delay and funds spent on this project have raised major concerns.
Bongani Dhlamini, the DPWRT’s spokesperson, said, “Since the project started, the estimated completion date could not be achieved due to various delays such as members of the community stopping the project, lockdown and shortages of building material from suppliers.
The project is expected to be completed by March 2022 in line with the contractor’s approved programme of works.”
In its response, the department did not mention the incident in which the construction was halted due to lack of payments.
On various occasions, subcontractors and the contractor said they had not been paid for several months. When asked when the public may expect to be able to walk into the market, the department was unable to respond.
Instead, Dhlamini said, “The department is responsible for the construction of the physical infrastructure. After it is finished it will be handed over to MEGA as it is the client.”
Dhlamini said the current project in progress is the installation of roof coverings.
“The related works are ongoing on the main market building, while finishes and various installations are ongoing in the agro-processing one. These two buildings constitute the larger portion of the scope of works. Activities on the other various ancillary buildings and services are also at different stages of construction.”
The DPWRT said it has a list of things it is doing to ensure that the intended completion date is achieved.
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“Since the department’s involvement with the operation from January 2021, it has enhanced this undertaking with a team of officials.
There are regular engagements with the contractor and project team to deal with any pending risks. However, the successful completion of the project as planned also depends on the continuous support from all key stakeholders and the community at large.”
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The Mpumalanga DA’s Trudie Grové Morgan said there is a financial crisis with the venture which could force it to stall. New contractors are put into place to complete the project due to previous ones abandoning it. According to the financial report, 100% of the budget was used.
