https://www.engineeringnews.co.za
Financial|Projects|Roads|supply-chain
Financial|Projects|Roads|supply-chain
financial|projects|roads|supply chain

Sanral dealing with ‘significant backlog’ in procurement

10th March 2022

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The South African National Roads Agency Limited (Sanral) says it is dealing with a “significant backlog in procurement”.

There are a number of reasons for this, including a process between the agency and National Treasury to seek clarification on the 30% subcontracting clause, which took 18 months to complete, as well as the interpretation of the term ‘local’, which led to the stalling of 64 Sanral projects, caused by community disruptions, says the agency.

Another reason is the rollout of supply chain management (SCM) reform to comply with Treasury regulations on procurement, issued under the Public Finance Management Act, as well as Covid-19 lockdown which required changes to tender procedures.

“All the above conspired to create a significant backlog, which resulted in 258 projects (to the value of R31.7-billion), planned to be awarded in 2020/21, being rolled over to the current annual procurement plan of 2021/22,” states the agency.

“The 2021/22 plan include a further 312 projects (R30-billion) to commence with the procurement process in this financial year.

“To provide perspective on the impact the SCM reform has on the administrative processes that must be concluded, it is noteworthy that in 2020/21, 212 contracts were awarded,” explains Sanral.

“This represents 4 180 tender submissions, which had to be checked for compliance in terms of eligibility criteria and regulations, before they could be evaluated for functionality, price and preference.

“One must bear in mind that any administrative error will result in the award being declared irregular.”

Sanral says it can confirm that the delay is not owing to a lack of funding, as projects will not be planned until funding is secured.

Between April 1, 2021, and February 28, 2022, the agency awarded 267 contracts, which represented R33-billion of work.

“Some 69 contracts have been evaluated, and are in various stages of adjudication/award.

“A further 148 projects are currently under evaluation, of which 35 closed more than six months ago.

“Of the total of 570 listed in the annual procurement plan for 2021/22, 256 advertisements have closed and 16 are currently advertised.

“It must also be indicated that the majority of projects are not delayed between adjudication and award, but rather between closing of advertisement and completing of the evaluations.”

For 2021/22, 267 awards have already been made, says Sanral.

 

Edited by Creamer Media Reporter

Comments

Showroom

Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.109 0.17s - 178pq - 4rq
Subscribe Now