Panel to examine pipeline’s costs

Posted On Tuesday, 01 February 2011 02:00 Published by eProp Commercial Property News
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Public Enterprises Minister Malusi Gigaba announced the panel of experts to investigate the substantial increases in costs and schedule delays of Transnet’s new multiproduct pipeline.

Malusi GigabaPublic Enterprises Minister Malusi Gigaba yesterday announced the panel of experts to investigate the substantial increases in costs and schedule delays of Transnet’s new multiproduct pipeline.

The panel, made up of people with pipeline, project management and construction, legal, financial and regulatory and compliance skills, will investigate the project’s cost increases and delays and make recommendations to Mr Gigaba.

The Department of Public Enterprises said the experts were expected to provide a "comprehensive" report of its findings by the end of April.

The department said Mr Gigaba had appointed project management and construction specialist Raymond Nkado, legal expert Kevin Trisk, regulatory and compliance specialist Inba Thumbiran, pipeline specialist Ian Thompson and the department’s project manager Adam Seedat.

Mr Nkado is a founding director of QualConsul QS, a consulting firm of professional quantity surveyors, project managers and built environment practitioners.

He is a former executive dean of the faculty of engineering and the built environment at the University of the Witwatersrand. Mr Trisk is a senior counsel and specialises in construction and engineering law and arbitration law.

Ms Thumbiran is programme manager for procurement and delivery at the Construction Industry Development Board.

Mr Thompson works for global consultants Adam Smith International. Mr Seedat was a financial analyst, the department said.

"The project deliverables are three independent reports on the governance, engineering and project management aspects, as well as independent legal opinion.

"These should recommend the appropriate course of action to be taken by (the government)," the department said.

"The team will be provided full access to Transnet personnel and information relating to the management of the (new pipeline) project. Transnet have indicated their willingness to work with the team, and the minister welcomes this."

Transnet spokesman Mboniso Sigonyela said that the company would co-operate fully with the team of experts.

In December, Mr Gigaba expressed concern at the increase of the pipeline project’s costs from an initial R9,5bn in 2006 to R23,4bn.

"You cannot have cost overruns running into billions of rands ... and there is no recourse," Mr Gigaba said last week.

He said the delays would ultimately hamper security of fuel supply, especially to the inland market.

 

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