Question NW691 to the Minister of Transport

Reply:

The PRASA section of the Mabopane Transport Hub project is divided into two sub projects which are implemented by two different service providers. The two interlinked projects are outlined below;

1. The Bridge project, and
2. The Concourse project

a) The current status of the two projects;

Bridge project: The contract was terminated on 01st April 2015 after matter had been taken to Arbitration as per clause 40 of the JBCC Contract. The Arbitrator determined in favor of PRASA and ruled that the Contractor had unlawfully suspended the works and walked off site without complying with the procedural and substantive requirements of the contract.

At the moment PRASA is in the process of resuscitating the project. What remains is the process of appointing a new contractor to finish the project. Currently the project stands at 70% completion. Major outstanding works remaining are parts of the roof, the link bridge over the railway lines, trading stalls, finishes and some remedial work on some structures constructed by previous contractor which were condemned by the consulting engineers and have to be demolished and rebuilt.

Concourse project: The project is 40% complete with the erection of the roof structure. Works on several platforms including platforms 5 and 6 are 100% complete and works on platform 7 and 8 which is the last platform have just commenced.

Progress on the concourse which focuses on ground floor demolitions, concrete works, brickwork and structural steel work is in progress. The roof structure is nearing completion and the mezzanine level steel structure is complete.

b) Project costs

Bridge project cost to date:

Item	Description	Value	Comments
1	Original Project Budget	R 197 818 781	Including VAT
2	Project Expenditure to date	R 143 736 161	Including VAT

Concourse project cost to date:

Item	Description	Value	Comments
1	Original Project Budget	R 199 605 421	Including VAT
2	Project Expenditure to date	R91 128 353	Including VAT

c) Reasons for the delays in completing the projects;

Bridge project: There were various reasons that delayed the project other than the process that led to termination.

• Land issues around ERF 433, Mabopane which resulted in the redesigning of the bridge to avoid the eminent land issues,
• Negotiations with traders associations, who refused to vacate the construction site until temporary trading structures were built for them,
• Community members and structures who demanded to be employed directly by PRASA instead of the appointed Main Contractor and therefore often stopped the site works in protest, and
• Strikes from workers demanding better remunerations than what the Main Contractor could offer.

Concourse project:

Item	Problem
1.	Employment opportunities & subcontracting demands from community resulting in protests and work stoppages
2.	Project scope change. Increase in time and project cost

d) When the project would be completed;

Bridge project: The project is expected to finish within 8 months from the date of site handover to the new contractor (once all the Supply Chain Management processes have been completed).

Concourse project: The project is expected to be complete by end December 2016