Work on South African National Roads Agency Limited’s (Sanral’s) Polokwane ring road project will resume this month.
The roads agency has appointed Edwin Construction to continue construction on the road, after the contract was originally awarded to Basil Read in 2015.
Work by Basil Read continued well until June 2018, when the contractor began experiencing cash flow challenges, which eventually led to it entering business rescue.
Sanral Northern region manager Progress Hlahla said Edwin Construction would continue with the contract.
“In April, the Sanral board approved the appointment of the contractor to continue the work,” Hlahla said on Friday.
Sanral, Basil Read and Credit Guarantee Insurance Corporation of Africa Limited (CGIC), have since agreed that the contract will be ceded from Basil Read to Edwin Construction.
CGIC will issue a new 10% performance bond and are assisting Sanral to cover and offset some of the additional administrative and contract price adjustment (CPA) costs.
At a contract value of R226.5-million, excluding value-added tax, and provision for a CPA, the remaining construction work to be carried out by Edwin Construction includes the completion of the new road, widening and strengthening of the old carriageway (which will become the new south bound carriageway) as well as the completion of the new intersections at the R37 (Lydenburg) and P977 (Silikon) road crossings.
Edwin Construction will also be responsible for bridge structures, culverts, road markings, studs, signage, fencing and drainage, as well as the cleaning up and finishing off of the road reserve, quarries and borrow pits.
Sanral is hopeful that the project will be completed by November 2020.