Province has to fork out in Gautrain deal
Murray & Roberts's share price soars after the Gauteng provincial government settles all Gautrain development disputes
Murray & Roberts, the Bombela Concession Company (BCC) and the Gauteng provincial government have settled all Gautrain development disputes, the construction and engineering group said on Friday. This caused its share to jump as much as 18% to R12.87 on the day, later settling to a gain of about 7% after the Gauteng government agreed to pay nearly R1.3bn in relation to disputed claims. The Bombela Civil Joint Venture (BCJV), which was responsible for the design and construction of the Gautrain system, had lodged the claims. "In terms of this conditional settlement, the [Gauteng government] will pay, for the benefit of BCJV, an amount of R980m within five days from the fulfillment date, together with a payment over two years of a capped amount of R294m — inclusive of interest — in full and final settlement of all development period disputes between the parties," Murray & Roberts said. The amounts include VAT and it is expected the suspensive conditions will be met by mid-December 201...
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