Molefe Seeletsa

By Molefe Seeletsa

Journalist


Lilian Ngoyi Street: Legal dispute over cancelled tender resolved amid optimism repairs cost won’t go over budget

The total budget for the project stands at R194 million.


Nearly two years after the City of Joburg’s Lilian Ngoyi Street was closed due to a gas explosion, only 15% of the repairs to the road have been completed.

On Monday, Joburg officials, including Mayor Dada Morero and Transport MMC Kenny Kunene, provided an update on the rehabilitation project during a media briefing.

Previously known as Bree Street, the road suffered significant damage following a gas leak explosion beneath its surface in July 2023.

Repairs to Lilian Ngoyi Street delayed

Kunene highlighted on Monday that the project faced delays, including the termination of a contract with Step-Up Engineering for failing to meet its obligations.

This led to a legal dispute between the Johannesburg Roads Agency (JRA) and Step-Up Engineering, further stalling progress.

“I understand that courts can take a very long time to finalise, and based on that, I decided to intervene and call JRA and Step-Up Engineering so that they can understand the service delivery challenges that they will be taking the citizens of Johannesburg through,” the MMC said in the press conference on Monday.

“So that they can understand the inconvenience that the legal process was going to give to the residents of Johannesburg, especially the users of Lilian Ngoyi.”

ALSO READ: City terminating contract for Lilian Ngoyi Street repair is not enough – DA

Kunene claimed his intervention facilitated an agreement between the parties.

“By the grace of God, JRA and Step-Up Engineering found each other after my intervention. That intervention saved legal costs and, more importantly, lots of money, as Step-Up was demanding money lost in profit.

“But we reached an agreement that they will only be paid for the work they have done,” he explained.

Following this resolution, the City of Joburg’s supply chain management team appointed a new contractor.

“Once the agreement was signed, they were then allowed to start with the process of appointing a new company.”

SMMEs contracted

Kunene underscored the importance of Lilian Ngoyi Street for Johannesburg’s economy, noting its role in transporting goods and people.

The project team will complete the first phase this year.

“We are still committing to the date of the end of August as the finalisation of Lilian Ngoyi,” he said.

READ MORE: DA doubts Joburg mayor’s deadline for Lillian Ngoyi Street reconstruction will be met

According to Kunene, the rehabilitation project will create approximately 80 jobs, with several small, medium, and microenterprises (SMMEs) contracted to participate.

“Job creation is always an important point to highlight.”

He added that R26 million has been allocated for SMME development.

“We are happy that there’s progress. The new company has now pumped out the water out of the tunnels. They are now stabilising the tunnels, and we can see that work is being done,” Kunene said.

Lilian Ngoyi Street rehabilitation project divided into two phases

Furthermore, Morero assured that the project team would adhere to the timelines, with the second phase focusing on extending the pavement, which they will complete in 2026.

“So in August 2026, we will deliver the final product, but for now, we [are] focusing on [fixing] the explosion site,” Morero said.

Motorists, however, will be able to use the road safely this year.

“Come August 2025, the road will be functional, and all our motorists can enjoy the road,” the mayor confirmed.

READ MORE: ActionSA urges government to declare Lilian Ngoyi Street a disaster zone

The total budget for the project stands at R194 million, with R94 million allocated for the 2024/2025 financial year.

“That is what has been allocated and what we are now spending,” Morero said, adding that the city’s budget, set to be passed in May, will include the remaining R100 million.

“We hope we will deliver it within budget and not escalate costs; that is why we told the contractor on site to stick to timelines,” he said.

Morero confirmed that the project, which began in November 2024, has made some headway, with 15% of the necessary 20% milestone completed.

“But we believe we’ll be able to catch up,” he said optimistically.

The JRA previously outlined that the first phase of the project includes reconstructing 450 meters of the collapsed road and other damaged infrastructure caused by the gas explosion.

The work involves building a new, reinforced concrete tunnel; reinstalling and relocating stormwater and sewer pipes; installing lighting, detection, and ventilation systems; and implementing essential lateral support for structural stability.

The affected area spans 1.8 kilometres, with the refurbishment project set to repair Lilian Ngoyi Street between Ntemi Piliso Street in Newtown and End Street in Hillbrow.

NOW READ: Is the City of Johannesburg too broke to fix Lilian Ngoyi Street?

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