Sanral appoints bank for tenders
PROJECTS: CANCELLED ONES TO GET NEW BIDDERS
Irregularity in agency’s process leads to cancellations.
The Development Bank of SA (DBSA) has been appointed to act as the South African National Roads Agency’s (Sanral’s) infrastructure procurement and delivery management support on the five strategic projects worth R17.4 billion whose tenders were cancelled in May.
Sanral cancelled these adjudicated tenders due to a material irregularity in the tender process.
The agency confirmed in May it had decided to secure the assistance of an independent public institution with infrastructure procurement expertise to assist with the process of getting the five tenders advertised, evaluated and adjudicated for recommendation to its board and to award these tenders within four months.
Sanral board chair Themba Mhambi said yesterday in fulfilment of the commitment that it would conclude that process in four months, “Sanral is today announcing the material and substantive beginning of that recovery process with the appointment of the DBSA as its infrastructure procurement and delivery management support on the projects.”
Sanral acting CEO Lehlohonolo Memeza said the tender awards for these cancelled projects could be made in September.
Transport Minister Fikile Mbalula said he is pleased Sanral’s board has moved with the necessary speed to address the due process lapses, with a clear plan on how to finalise the tenders within the shortest possible time, given the strategic nature of the affected projects and their importance to economic reconstruction and recovery.
“We have traversed a hard road in the aftermath of state capture and irregular award of tenders in some of our entities, and acts of downright malfeasance in others, which include Prasa and Acsa.
“The hard lesson we have learnt is to remain vigilant and stop creeping lawlessness, greed and corruption dead in its tracks,” he said.
Mhambi said it had chosen the DBSA because it was not involved in the design, cost estimation and tender documentation stages of the cancelled projects and there is no conflict of interest.
“This should reassure all interested parties and the public about the integrity and the independence of the new procurement processes for their projects.”
Mhambi said Sanral’s board had met the first part of its deadline with respect to its recovery plan for these projects, which related to governance.
He said the operational part must follow and that responsibility has been entrusted “to those who get paid at Sanral to run the operations of the organisation”.
Memeza said once the tenders are awarded and Sanral’s project managers and consultants begin to supervise contractor performance and project delivery, the DBSA’s role will change to project oversight on behalf of the board.
Memeza said the planned timeline for the execution of the operational phase of the work is:
A procurement project inception meeting, which took place in June, and the development of a memorandum of agreement (MoA), which was finalised yesterday.
In July and August, the project team will be mobilised and there will be a review of bid specifications, the approval of bid specifications and adverts, the advertisement of tenders, the receipt of bids, bid evaluation and bid adjudication.
In September, there will be the submission of bid evaluation and adjudication reports to Sanral, and the Sanral board’s consideration of recommendations, followed by the awarding of the tenders.
“All the interested parties and service providers are therefore advised that they should be on the lookout for these tenders during July,” she said.
Mhambi confirmed yesterday that Sanral has not received any legal claims related to the cancellation of these tenders and the cancellations will result in these projects being delayed by four months.