Gauteng to cough up R1.3bn in Gautrain dispute
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