The Eastern Cape Development Corporation (ECDC) has advanced more R15.8-million in loan finance to Kokstad-based Fez Construction since 2001, enabling the business to deliver on R300-million worth of construction projects, the ECDC said on Wednesday.

Fez Construction was started in 2000 by Fezekile Vatsha who, at that time, had no previous experience in the construction business.

“[While] I had no previous experience and my business partner at the time only had one year’s experience in the industry, we were determined to make our dream become a reality. We identified a gap in the market because there were few contractors in the area at the time,” Vatsha said.

Fez Construction’s first project was the construction of a R189 000 community hall, for which the ECDC provided initial capital of R38 000.

Following this first project the company also completed a R360 000 water project, a R660 000 access road and three clinics in Bizana, Mount Fletcher and Matatiele valued at R6.5-million, R4.9-million and R5.4-million respectively.

“ECDC further demonstrated its faith in my business by disbursing an R800 000 loan to the company for the construction of a bus depot in Mount Frere,” Vatsha said, adding that the company had met its loan obligations to the ECDC and repaid the loans as required.

Meanwhile, the ECDC granted the company another R12.6-million in funding in January this year, which would enable the company to deliver on three school construction projects in Butterworth, Ngcobo and in Maluti.

“These projects contribute to job creation, infrastructure improvement, the development of the contractor from lower Construction Industry Development Board grades to higher grades and ECDC’s quest for self sustainability.

“The contractor was able to complete all the previous projects on time and [the] ECDC is confident [that] the company will also complete the current projects on time and thereby, avoid late completion penalties. This should place Fez Construction on good ground to secure additional contracts in future because of its exceptional record. Fez Construction is a good payer as all previous loans have been repaid and current loans are being serviced well in terms of progress payments on a monthly basis,” ECDC account manager Andile Zweni said.