Johannesburg: The South African National Roads Agency SOC Limited (SANRAL) will transition to open tender processes for routine road maintenance and engineering consultancy services. This decision follows legal challenges that deemed the use of contractor panels unlawful and unconstitutional.
According to South African Government News Agency, SANRAL Chief Executive Officer (CEO) Reginald Demana announced on Tuesday that the agency plans to open a new tender process immediately. He confirmed that incumbent contractors would remain in place until November 30, 2026, to ensure uninterrupted road maintenance during the transition period. All existing panel appointments have been nullified, and no work will be allocated under the previous set-aside tenders.
Demana addressed the media in Centurion regarding SANRAL's procurement issues, including allegations of corruption and litigation. He noted that in the coming days, tenders would be issued in batches, with some already released in the Western Cape and Northern Cape Provinces. This move is part of SANRAL's commitment to act swiftly in response to the court's findings.
The shift comes after the High Court of South Africa, Gauteng Division, Pretoria, declared SANRAL's decision to award routine road maintenance contracts to a panel of 20 companies unconstitutional and unlawful. This ruling was the result of successful challenges by construction firms BCB Solutions (Pty) Ltd and Botle Ba Afrika Roads (Pty) Ltd.
Demana acknowledged that SANRAL has learned valuable lessons from the litigation. He highlighted the need for more time to prepare for changes in their business operating model and to understand the socio-economic impact on service providers. Previously, the agency managed routine road maintenance through approximately 251 contractors but reduced this number to 20, aiming for quicker and more efficient procurement.
The tender process had received around 401 submissions, with 20 successful bidders initially recommended. Moving forward, SANRAL plans to adhere to open tender processes while working within the court-ordered timelines to ensure compliance and transparency.
