Picture: ISTOCK
Picture: ISTOCK

Basil Read’s financial woes have stalled a R650m road project in the Western Cape.

The delay is causing residents of the small Boland town of Montagu a headache as trucks are being diverted through the town. The construction company is under business rescue.

On Friday‚ Jacqui Gooch‚ the head of the provincial transport and public works department‚ said an interim contractor would be appointed to manage the road works until a "project completion contractor can be appointed." The work is expected to be completed in July 2020.

"The interim contractor will be appointed no later than the end of the first week of September 2018‚" said Gooch. "This is not a case of simply appointing another contractor. The process of appointing a new contractor is a complex‚ legally regulated, supply-chain process that must take into account the impact on sub-contractors and the community.

"While it may seem that work is at a standstill‚ certain critical bridge and other works are currently being carried out and will continue through the appointment of the interim contractor. The entire construction site will be safeguarded until then.

"To date‚ approximately R31m has been spent on targeted enterprises and approximately 80‚000 person-days of work have been created."