Western Cape Business News

Send  Share  RSS  Twitter  25 Mar 2013

INFRASTRUCTURE: No Construction Without A Full Understanding Of Costs


Recent Western Cape Business News

The City of Cape Town is firm that South African National Roads Authority Limited (SANRAL) cannot be allowed to continue with their plans for the N1/N2 Winelands Toll Highway Project without us having a full understanding of all the costs and impact of this project. We are therefore pleased that SANRAL have agreed that they will not conclude a concession agreement before 1 June 2013 and that a date of 16 and 17 May has been set for our urgent interdict application to be heard by the Courts.

Despite the best efforts of the City’s legal teams, SANRAL has thus far not provided the people of Cape Town with a full understanding of the financial implications of this massive project.

SANRAL’s most recent media comments simply mean that they want to engage with the people of Cape Town on their own terms,” said Councillor Brett Herron, Mayoral Committee Member for Transport, Roads and Stormwater.

The people of Cape Town deserve the full story,” he said.

Previously, and in response to the City’s urgent interdict application filed in November 2011, SANRAL agreed that it would take no further steps towards implementing the toll road project pending the City’s review application being heard and that it would provide the City with 45 days’ notice of its intention to start working on the toll project.

Such notification was received on 6 March 2013.

Preventing the commencement of the toll project before the Court has determined the review application is in our view vital to the City’s review application,” said Councillor Herron.

SANRAL has thus far refused to share with the City:

·         Information relevant to the costs of upgrading and tolling the N1 and N2;

·         The likely magnitude of the toll fees; and

·         The impacts on road users, the local economy and the City.

In its notice to the City on 6 March, SANRAL indicated its intention to conclude a concession contract with the preferred bidder or if necessary the reserve bidder, at an unspecified time after 20 April 2013. SANRAL has also notified the City that it intends commencing with construction work, but it refuses to tell the City what work it plans to do, or when it will do it.

As a result of this notice, it is necessary for the City to proceed with its interdict application to prevent the conclusion of the concession contract, as well as the commencement of the project pending the hearing of the review application.

The City is seeking to have its interdict application heard, so that the residents of Cape Town do not find themselves in the same situation as the one that arose in Gauteng where we may have to finance infrastructure built without first having a full understanding of costs.


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