Question NW2516 to the Minister of Public Works and Infrastructure
05 July 2023 - NW2516
Khoza, Mr AV to ask the Minister of Public Works and Infrastructure
In light of the fact that the Park Road Police Station has been under construction for many years now and is still incomplete despite three contractors having been contracted to do the construction, (a) what happened to the two previous contractors, (b)(i) what total amount were they paid and (ii) over what period of time and (c) what percentage of the budget has been expended to date in the project?
Reply:
The Minister of Public Works and Infrastructure:
Background
In Park Road Police Station is being implemented by the Development Bank of South Africa on behalf of the Department of Public Work and Infrastructure. The project scope for this project entails construction of new facilities (New Gate House, Dog Kennels, CSC, Educational Centre and Archive) and Repair and renovation to all existing building.
a) Plant (IDP) was signed off by the DBSA, as SSD was experiencing cash flow problems. IDP, the second Contractor, was subsequently terminated on the 23 July 2019 due to non-performance.
b) (i) At that time of March 2019, the SSD was paid R9 704 530.60 for works done by SSD (about 15.4 % of Initial Construction Cost of R62 879 067.08) and progress on site was 17%. IDP were however terminated on the 23 July 2019 and no monies were paid to them.
(ii) The contract duration was for 24 months with the initial completion date of 30 November 2019. As mentioned above, the IDP were terminated on the 23 July 2019.
c) Following the ceding of the initial contract between SSD and IDP, and subsequent the termination of IDP. A new tender process was started under RFP 222/2019 to appoint the replacement contractor. The recommended bidder offer was R85 211 178. The DBSA requested funding for R98 299 615 (Construction, Professional Fees and DBSA Management fee) however this was no approved. DBSA was instructed to institute legal processes to claim from repudiated contractor and recover the funds in order to successful complete the project.
DBSA appointed Mpfumelelo Business Enterprise cc (MBE) on 29 October 2020 for R 48 970 754.93 on a phased scope. To date, the overall progress is approximately 73%, the anticipated practical completion date of is 03 October 2023. To date R 37 302 012,99 Incl. VAT has been certified for work done by MBE
MBE was handed over the Park Road SAPS site on 04 January 2021 and works commenced on the 18 of January 2021 for a 11 months duration to implement the reduced scope (Phase 1).
With respect to the percentage of budget and expenditure to date. As mentioned above, SSD was paid R9 704 530.60 for works done by SSD (about 15.4 % of Initial Construction Cost of R62 879 067.08). For the current contractor, R 37 302 012,99 Incl. VAT has been certified for work done by Mpfumelelo Business Enterprise cc (MBE) (About 76% of Contract amount of R48 970 754.93).