Sanral to issue 70 tenders worth R28bn as it embarks on drive to upgrade ailing road network

The South African National Roads Agency (Sanral) will in the next six months issue tenders worth about R28bn aimed at stimulating economic growth across all provinces. 

The agency, which is responsible for the construction and maintenance of the national road network, said the tender rollout, that will see 30% of the tenders allocated to smaller black-owned companies to deepen transformation, is part of promoting infrastructure, development and creating opportunities across the country. 

About 70 tenders are to be put out in the next few week. 

“Through these contracts, Sanral aims to ensure small businesses graduate to become major construction companies,” the agency said. 

“There is quite a lot of work we want to dish out. By March, we want to have about R28bn worth of tenders in the market. However, some will be closed towards April when we enter the new financial year,” Sanral CEO Reginald Demana said.

The funds have been allocated according to four regions:

• the Western Region (Western Cape and Northern Cape) will get contracts worth R600m;
• the Southern Region (Eastern Cape) will be allocated contracts worth R2.8bn;
• the Eastern Region (Free State and KwaZulu-Natal) will be allocated contracts worth R2.1bn; and
• the Northern Region (Gauteng, Limpopo, Mpumalanga and the North West) will be allocated contracts worth more than R500m. 

The agency said the Eastern and Southern regions had been allocated bigger portions as they encompass significant infrastructure projects such as the N2/N3 expansion in KwaZulu-Natal and N2 Wild Coast project in the Eastern Cape. 

“The full rollout of the additional contracts that we are going to issue will include dividing the R28bn across the entire country, in all provinces. We try to ensure we are distributing work and tenders equitably so that we don't leave any part of the country feeling we are not looking after the national road network in their area,” said Demana. 

Sanral closed 77 tenders worth R6.43bn in December.

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