N1/N2 Winelands toll-highway project, South Africa

4th December 2015

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
N1/N2 Winelands toll-highway project, Western Cape, South Africa.

Client
South African National Roads Authority Limited (Sanral).

Project Description
The project encompasses 105 km of the N1 highway between Cape Town and Worcester, and 70 km of the N2 between Bot river and Cape Town.

The toll-highway project will include the construction and upgrade of roads and associated infrastructure on certain portions of the N1 between the R300 and Sandhills, and on the N2, in the Western Cape; the construction and upgrade of portions of the N1/N2; the upgrade of the second bore of the Huguenot tunnel; the construction of toll plazas between the R300 and Bot river; and the construction of the new, closed ‘cut-and-cover’ tunnel alignment through Helderzicht, extending west from the Danie Ackerman Primary School to the Victoria street interchange.

In 2003, the project was granted environmental authorisation and was gazetted as a toll road in 2008.

Value
As the project is a 30-year concession, Sanral has proposed to develop it through a public–private partnership.

The concessionaire will finance the construction, maintenance and operation through toll collection and will be required to hand over the road to Sanral after this time.

The overall cost of the project is estimated at R10-billion.

Duration
The concession contract comprises the upgrade work on the N1 and N2 during an initial construction period of about three years and the upgrade, maintenance and operation of the road for the remaining 27 years.

The initial construction works will take three years to complete. The operation and maintenance period for the public–private partnership project is expected to start in 2015 and end in 2042.

Latest Developments
Sanral applied for leave to appeal on November 27 against the Western Cape High Court judgment, which was handed down in the High Court on September 30, 2015, in the Winelands tolling case.

This prompted the City of Cape Town to apply for leave to cross-appeal against a section of the judgment.

“If they want to continue with the toll roads they will have to start the whole process again. This time it must include public consultation,” Executive Mayor Patricia de Lille has said at the time.

The proposed N1/N2 Winelands project has been dragging on since 2008.

According to a statement issued by the City of Cape Town on November 27, the ruling on September 30 was "broadly speaking", in its favour.

It adds, however, that Sanral’s decision to apply for leave to appeal against the judgment leaves the city with no choice but to also apply for leave to cross-appeal against certain issues.

The city wants to cross-appeal the court order dismissing the city’s application for reviewing and setting aside the decision of the Sanral Board in 2014 to declare certain sections of the N1 and N2 as toll roads.

The city also wants to cross-appeal the order refusing its application for an interdict to prevent Sanral from concluding a concession contract that will prevent Sanral and the National Minister of Transport of the discretion to determine the toll amount that may be levied, as well as rebates and increases or reductions, before a proper consultation process has taken place.

In a letter dated October 12, 2015, De Lille extended a second invitation to Nazir Alli, CEO of Sanral, to settle the matter outside of court.

In the city's view, Sanral is not interested in working together to find a solution for the infrastructural upgrades that might be required for the N1 and N2 freeways.

"Even though it is within the national government’s mandate to determine how road infrastructure should be funded, the political decision-makers and public entities, such as Sanral are still obliged to follow due process and act within the law the city has said in a statement.

The city firmly believes that the process undertaken by Sanral to declare portions of the N1 and N2 as toll roads was “improper and unlawful” and it will “take this fight to the country’s highest courts if need be".

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sanral, tel +27 21 975 4600.
Group Five, tel +27 11 806 0241, fax +27 11 803 5829 or email scoventry@groupfive.co.za.
Basil Read, tel +27 11 418 6300 or fax +27 11 418 6333.
Bouygues Construction, tel +33 1 3060 3300, fax +33 1 3060 4861 or email bouygues-construction.com.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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