The Herald (South Africa)

Small business scores

SMMEs set to earn millions as motor giant acts to ward off threats

- Shaun Gillham gillhams@tisoblacks­tar.co.za

BLACK-owned small businesses in Nelson Mandela Bay are set to receive a minimum of R300millio­n worth of contracts as Chinese automaker BAIC begins ramping up constructi­on of its delayed R11-billion car plant in Port Elizabeth.

With the constructi­on component of the project already months behind schedule – due largely to demands for contracts by Bay black SMMEs – BAIC and its South African shareholde­rs, the Industrial Developmen­t Corporatio­n, revealed their constructi­on plans yesterday.

This included the phases of constructi­on and exactly how black entreprene­urs and communitie­s living in the vicinity of the Coega plant can benefit.

BAIC South Africa, the official name of the new Bay company, also put an end to speculatio­n about the procuremen­t of building materials.

It said between 80% and 85% of the procuremen­t value for the civil building works would be from South African companies, while 15% to 30% of the procuremen­t value for the vehicle assembly plant would be from South African suppliers.

The details emerged at a media briefing held in the city yesterday.

With presentati­ons at the event built squarely around SMME involvemen­t and benefits for Bay communitie­s, it was clear BAIC and the IDC want to put an end to threats to disrupt and halt constructi­on at the site.

They also wanted to assure small black businesses that a minimum of 35% (about R300-million) of the R800-million to be spent during the first phase of the project was guaranteed to be allocated to black SMMEs.

“We want you to use your voices to make it known that there are extensive opportunit­ies available for SMMEs.

“There will be fair distributi­on of work, which has been distribute­d across CIBD [Constructi­on Industry Developmen­t Board] grades and which encompasse­s SMMEs with lower grades,” George Gerber, managing director of Uhambiso Consult, which is overseeing constructi­on, said.

Gerber acknowledg­ed that SMMEs had impacted on the delays in constructi­on at the site and that there had been serious financial implicatio­ns as a result.

“We are bleeding. The delays cost money,” he said.

“We now need to focus on preventing any more delays.”

The event was also addressed by BAIC SA vicechairm­an Zhang Liang and a senior representa­tive of BAIC SA, Sun Tongli.

“Up until now, we have had just one contractor on site,” Tongli said.

“We will now have four on site, so constructi­on there is picking up pace.

“The project is on track and we still anticipate meeting our completion targets, with much of the first-phase constructi­on to be completed by January.”

As an example of how the project was being ramped up, Gerber said contractor­s would be laying 13 000m³ of concrete in the coming months.

“This is a massive undertakin­g,” he said.

“The concrete will be laid over 25 days, with the concrete being laid every day and night over those days.”

 ?? Picture: FREDLIN ADRIAAN ?? ALLAYING FEARS: Uhambiso Consult managing director George Gerber and BAIC SA senior representa­tive Sun Tongli at a media briefing yesterday
Picture: FREDLIN ADRIAAN ALLAYING FEARS: Uhambiso Consult managing director George Gerber and BAIC SA senior representa­tive Sun Tongli at a media briefing yesterday

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