Gaut­eng to cough up R1.3bn in Gau­train dis­pute

CityPress - - Business -

The Gaut­eng gov­ern­ment and Bombela Con­ces­sion Com­pany will pay R1.3 bil­lion in a set­tle­ment of dis­putes re­lated to the devel­op­ment of the province’s high-speed rail link.

Con­struc­tion firm Mur­ray & Roberts on Fri­day told share­hold­ers that the Gaut­eng pro­vin­cial gov­ern­ment would pay out R980 mil­lion to the Bombela Civil Joint Ven­ture, in which it is a 14% share­holder.

Mur­ray & Roberts also has a 33% stake in Bombela Con­ces­sion Com­pany.

This will be ac­com­pa­nied by a pay­ment of R249 mil­lion over two years. This set­tle­ment cov­ers dis­putes re­lat­ing to the Gau­train project’s devel­op­ment pe­riod.

The Gau­train project in­volved a pub­lic and pri­vate part­ner­ship. Bombela Civil Joint Ven­ture was re­spon­si­ble for the de­sign and con­struc­tion of the trans­port sys­tem.

Firms Bouygues and Strate­gic Part­ners Group are also share­hold­ers, with stakes of 45% and 10%, re­spec­tively.

The dis­putes are re­lated to ad­di­tional costs in­curred dur­ing the devel­op­ment of the Sand­ton sta­tion, and the John Vorster and Jean av­enues bridges.

There was also a de­lay and dis­rup­tion claim that cov­ers 140 in­di­vid­ual claims that in­ter­rupted the con­struc­tion. There was a fur­ther dis­pute re­lated to the devel­op­ment of a wa­ter ingress, which was “in ex­cess” of the con­tract spec­i­fi­ca­tion. – Fin24

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.