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Construction giants anxious not to miss out on Gautrain tenders

Posted On Monday, 04 April 2005 02:00 Published by eProp Commercial Property News
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AVENG, SA's largest construction group, warned yesterday that if government failed to award the construction contract for the Gautrain high-speed rail link by next month, it would be "very difficult" to meet the 2010 deadline it has set.

Carl GrimAVENG, SA's largest construction group, warned yesterday that if government failed to award the construction contract for the Gautrain high-speed rail link by next month, it would be "very difficult" to meet the 2010 deadline it has set.

The warning by CEO Carl Grim echoes a similar one by SA's second-largest construction group, Murray & Roberts, last month.

The warnings follow several delays in the announcement of the contract winner to build the "Shilowa Express", since at least November.

It was crucial to meet the 2010 deadline as the rail link was part of infrastructure that SA had committed to developing in its bid to secure the 2010 Soccer World Cup. Aveng and Murray & Roberts are part of the Gauliwe and Bombela consortiums vying for the contract, estimated at between R7bn and R12bn.

Both construction companies have warned that the development of the rail link would be extremely challenging, as it would require tunnelling through the hard rock beneath Johannesburg.

Government has now promised to announce the contract winner on May 4. Even then, construction could only really start next year after financial aspects had been put in place, Grim said.

Aveng still submitted a "final best and final" offer last Thursday, Howard Jones, head of Aveng's construction division, Grinaker-LTA said this week.

Grim said the size and complexity of the project - an 80km track linking Johannesburg, Pretoria and Johannesburg International Airport - was immense.

Aveng's tender submission documents, which were submitted four years ago, weighed three tons, he said.

Jones said two bids were being evaluated in government by a panel of about 60 engineers.

Aveng is part of the Gauliwe consortium, which consists of international rolling-stock manufacturer Alstom, Spanish civil contractor Dragados Concesiones and South African construction company Grinaker LTA.

Grim said that if Aveng's consortium won the contract it would add about 12% a year to the group's adjusted revenue.

 

Last modified on Saturday, 19 October 2013 12:33

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