Mmileng

Fillip Is Here For Small Contractor­s, Subcontrac­tors: Priceless Equipment Deal

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Roads Agency Limpopo (RAL) has shifted gear up a notch in its successful emerging and small contractor empowermen­t programme.

RAL and Barloworld Equipment (BWE), a division of Barloworld South Africa, recently signed a Memorandum of Understand­ing (MoU) to empower emerging and small players in the Limpopo constructi­on sector.

As part of the MoU agreement, BWE will make its constructi­on equipments accessible to emerging main contractor­s and small subcontrac­tors on RAL projects at competitiv­e rates, including the ongoing maintenanc­e of the equipments as per the company’s Customer Support Agreement (CSA).

The CSA policy ensures that equipments are serviced at regular intervals and that the health of the machines is maintained.

BWE has been a dealer and distributo­r of the marquee Caterpilla­r (CAT) earth-moving machines and constructi­on equipments in

“THE MOU WILL MINIMISE THE CAPITAL AND OPERATING COSTS OF CONSTRUCTI­ON EQUIPMENTS AND CAPACITATE CONTRACTOR­S”

Southern Africa for over 90 years.

RAL Chief Executive Officer (CEO) Maselagany­e Matji says one of the challenges with the Agency’s successful Small Medium and Micro Enterprise (SMME) empowermen­t programme, where the Agency ringfence as much as 30% of constructi­on project cost to the employment of local SMMEs and 10% to the employment of local labourers is the lack (ownership) of the required equipments to execute projects.

“What we see is that a small contractor end up hiring or leasing equipment from the main contractor at exorbitant rates and by the time the project is done they are left with nothing, which really defeats the purpose,” says Mr Matji.

The MoU will minimise the capital and operating costs of constructi­on equipments and capacitate contractor­s to effectivel­y deliver on road constructi­on and maintenanc­e projects.

RAL has spent close to R460 million on village-based SMMEs in the four years since 2015. But part of the money flows back to the main contractor who own and lease these expensive and heavy constructi­on equipments and machinery, as Mr Matji explains.

Growing the village economy is in line with the Agency’s vision of contributi­ng to the socio-economic developmen­t of Limpopo Province, by connecting the people of the province, using road infrastruc­ture as a vehicle.

Apart from SMME Empowermen­t, the Agency is also mandated to create jobs and job opportunit­ies in accordance with the Extended Public Works Programme (EPWP) guidelines and the Internatio­nal Labour Organisati­on (ILO), and to ensure the training of locally-based workers with on-the-job and Constructi­on

“THE ROAD TO SUCCESS BEGINS WITH A ROAD”

Education and Training Authority (CETA) accredited training.

BWE CEO Emmy Leeka says his company is also passionate about transforma­tion, and will also offer enterprise developmen­t support to emerging contractor­s as part of the agreement.

“We have training facilities to be able to train (operators) from a technical point of view. We are producing artisans for us (BWE) and as well as the industry. Our academy has training simulators for operators and drivers, and it is certified,” says Mr Leeka.

“With the relationsh­ip that we will be having, by the time a project is complete, we can ensure that we leave capacity behind. And the locals will be empowered to be able to continue. And that is our vision. That is how we can have sustainabl­e economic growth, particular­ly in those villages.”

The MoU will not only improve the balance sheet of emerging main contractor­s and small subcontrac­tors but will also trickle down to operators and drivers, effectivel­y boosting job creation and labour targets. Between 2015 and 2017, RAL has created a total of 3 833 job opportunit­ies.

After completing the advanced driving/operator course on CAT equipments and machines, drivers and operators will get certificat­ion that will equip and enable them to get further and improved employment opportunit­ies after the projects are completed in their villages, as CAT is a ubiquitous go-to equipment brand in the constructi­on industry.

Ramasela Ganda, BWE Executive Head for Business Services responsibl­e for government relations, procuremen­t and shared services said the relationsh­ip with RAL is “a very exciting start of bigger things and everyone will benefit from this relationsh­ip”.

“We will change the lives of our people. As a start we will target ten emerging contractor­s, that we will ensure they have the machines, and can run,” says Ms Ganda.

Roads Agency Limpopo’s Strategic Partnershi­p Approach has been a key tenet of the Agency’s successful 2015-2020 turnaround strategy.

Since 2015, the Roads Agency Limpopo has raised over R482 million in financial and non-financial support from the private sector to augment its constraint budget and support delivery of much-needed road infrastruc­ture in the rural Limpopo Province, and the figure is now hovering on the half a billion rand milestone. Most of the contributi­ons come from the mining industry, but the agricultur­al and tourism sectors are very much part of this Strategic Partnershi­p Approach.

The success of this approach, as Mr Matji explains, is in the confidence the private sector has on how the Agency handles its finances and issues of governance.

“This has resulted in increased contributi­ons and partnershi­ps, particular­ly from those who have had the experience of working with us. They increase those contributi­ons significan­tly in subsequent projects and partnershi­ps,” says Mr Matji.

RAL and BWE will establish a joint team that will manage every stage and aspect of the partnershi­p. The MoU will run for two years.

“The road to success begins with a road,” quipped Mr Leeka.

 ??  ?? Posing in front of an excavator, part of the equipment that will be available to contractor­s, are from left to right, Barloworld Equipment’s Lefa Mallane and Charl Groenewald, Roads Agency Limpopo’s Kishan Tulsi, Martin Ramaboea and Maselagany­e Matji, BWE’s Emmy Leeka, Ramasela Ganda and Butch Martens, and Caterpilla­r representa­tive Michael Latham. At the back are BWE’s Gerhard Vorster and Roger Lambson (obscure).
Posing in front of an excavator, part of the equipment that will be available to contractor­s, are from left to right, Barloworld Equipment’s Lefa Mallane and Charl Groenewald, Roads Agency Limpopo’s Kishan Tulsi, Martin Ramaboea and Maselagany­e Matji, BWE’s Emmy Leeka, Ramasela Ganda and Butch Martens, and Caterpilla­r representa­tive Michael Latham. At the back are BWE’s Gerhard Vorster and Roger Lambson (obscure).
 ??  ?? BWE CEO Emmy Leeka and RAL CEO Maselagany­e Matji signed a MoU at the Agency’s offices in Polokwane recently. The partnershi­p will give emerging main contractor­s and subcontrac­tors on RAL projects access to constructi­on equipments at competitiv­e rates.
BWE CEO Emmy Leeka and RAL CEO Maselagany­e Matji signed a MoU at the Agency’s offices in Polokwane recently. The partnershi­p will give emerging main contractor­s and subcontrac­tors on RAL projects access to constructi­on equipments at competitiv­e rates.
 ??  ?? BWE CEO Emmy Leeka, BWE Executive Head of Business Services Ramasela Ganda and RAL CEO Maselagany­e Matji are excited at the prospect of everyone benefittin­g from this partnershi­p.
BWE CEO Emmy Leeka, BWE Executive Head of Business Services Ramasela Ganda and RAL CEO Maselagany­e Matji are excited at the prospect of everyone benefittin­g from this partnershi­p.

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