City reports solid tender spend

Huge improvement on City Capex spending

MUCH to the delight of City of uMhlathuze Mayor Mdu Mhlongo, awarding of tenders dominated Tuesday’s Exco meeting.

This brought a threefold positive reaction in that:

• Capital expenditure (Capex) is increasing steadily after a poor start in the current budget term;

• The concerted attempt to ‘spread the wealth’, especially to youth-owned entities, is happening;

• Backlogs in adjudication of tenders are steadily being eradicated.

‘Exco should applaud the Bid Adjudication Committee for awarding tenders other than through the Section 36 (supply chain management) process, so that everyone gets a chance,’ said Mhlongo.

‘The spending issue must and is being dealt with, thanks to the Bid Committee being more active.’

The City’s Chief Financial Officer, Mxolisi Kunene, confirmed the improvement in Capex spending.

‘There was indeed a slow start in our spending pattern because of the tender allocation problems, but this will pick up now.

‘In January alone, we paid over R55-million in Capex spend and to date have paid R179-million.

‘This equates to 33% of the newly adjusted budget of R548.5-million,’ said Kunene.

‘Ideally, we should now be at 55%.’

On the excessive overtime issue that has negatively impacted the budget, Kunene said high level talks had been held with union leaders, who acknowledged examples of staff booking as much as 280 hours overtime was simply ‘not possible’.

‘We still need to implement some of the suggestions that came out of the talks.’

Significant tenders awarded included:• Supply, installation and commissioning of high mast

lighting in the city.

This long-awaited tender was welcomed as priority had been given to crime hot spots, such as the area between the CBD and Alton where criminal activity is rife. Two tenders each were awarded to Vuseni Engineering (R5.5-million total) and Solethu Energy (R5-million). The project will be rolled out over the next 10 years to all wards at a total budget of R250-million.

• Two-year maintenance of existing storm water servitudes including kerb inlets, street cleaning and walkways.
Fouteen companies were allocated portions of the tender which amounts to R21.25-million

• The Mkhwanazi North Phase 5 Reticulation project was awarded to Afriscan at a value of R10.3-million.

• Provision of specialised consulting contractor for the non-revenue water reduction programme – awarded to Joat Consulting at a value of R17.7-million.

• Supply and installation of check meters, circuit breakers and six-way boxes at Ngwelezana, Dumisane Village and Mbali Village – awarded to uMhlathuze Electrical at a value of R4.5-million.

• Mzingazi Village Sewer: Phase 2, Portion 1 – awarded to True Build Services at a value of R17.2-million.

• Construction of VIP Toilets: Mkhwanazi Traditional Authority area – awarded to Deezlo Trading JV at a value of R25.7-million.

• Construction of Madlebe sports field change rooms and ablution facilities – awarded to Fourman Trading & General Services at a value of R1.7-million.

• Rehabilitation and renovations of Ngwelezane sports field change rooms and ablution facilities – awarded to Vikelani Construction CC to the value of R980 000.

• Perimeter palisade fencing for Madlebe sports field – awarded to Mpandla Trading to the value of R818 360.

• Rehabilitation of Ngwelezana sports field soccer pitch and practice field – awarded to Liwa Construction to the value of R1.6-million.

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