JRA to appoint new contractor to fix CBD street destroyed in gas blast

The Johannesburg Roads Agency (JRA) says it is in the process of appointing a new contractor to undertake the repair of Lilian Ngoyi (formerly Bree) Street. 

This is after it terminated the contract of the initial contractor, Step Up Engineering, on August 14.

The street in the CBD was destroyed after a devastating gas explosion last year. 

The City of Johannesburg had allocated R196m for the repairs and the project was expected to be completed by December 15.

The contract included removing the rubble and damaged infrastructure; construction and replacement of service tunnels; and “installation of modern health and safety measures to mitigate the risk of similar disasters in future”. 

JRA acting CEO Lufuno Mashau said the agency would “ensure the quick resumption of construction through the appointment of a new contractor to prevent any further unnecessary delays”.

The agency said the rehabilitation project incurred delays due to the contractor’s failure to meet contractual obligations. It said it undertook several interventions to hold the contractor accountable and ensure the project remained on track including letters issued by the JRA and City of Joburg.

ActionSA said it had written to MMC Kenny Kunene for an explanation, adding the contract failures raised serious concerns about transparency and accountability.

JRA spokesperson Bertha Peters-Scheepers said the contractor had not handed over required documentation within 14 working days of site handover.

She said interventions made included notices relating to non-adherence to project requirements. “Warning letters relating to non-submission of project documentation, contract breach correspondence relating to the contractor’s failure to submit contractual deliverables, and poor-performance notices, as well as various poor-performance meetings, which were held with the contractor to rectify poor and adequate time to implement these corrective measures.”

Peters-Scheepers said this led to the JRA’s issuing a 14-day notice of intent to terminate the contract, and the subsequent termination, effective from August 14.

“Due process was followed during the appointment of Step Up Engineering. JRA conducted financial ratio analysis to assess the financial health of the company and the outcome of the exercise indicated the company is in good financial standing to complete the project,” she said.

“The company also holds a valid CIDB 9CE grading in terms of the Construction Industry Development Board (CIDB) grading, a prerequisite to be appointed for contracts in excess of R200m. Before the appointment contract was concluded, the bidders and the directors of the shortlisted bidders were checked on the National Treasury register of restricted suppliers and tender defaulters report.”

Step Up Engineering and its director do not appear on the National Treasury’s list of defaulters, she said.

“The JRA can confidently state that the panel appointment was done in a thorough, transparent and fair process. During the panel we can confirm that five bidders were invited and only three responded, and based on the bidding process Step Up Engineering was the successful bidder.”

Peters-Scheepers said the remaining work of the project’s first phase included the reconstruction of the 450m of collapsed road and associated infrastructure during the gas blast; construction of a new reinforced concrete tunnel; reinstallation and relocation of stormwater and sewer pipes; installation of lighting, detection, and ventilation systems; and the essential implementation of lateral support for structural stability.

She said the projected duration for the rest of the phase was nine months and the estimated date of completion was June 30 2025, extending the initial deadline by six months.

“The new contractor will also undertake the second phase of the project, inclusive of the road surface upgrades and sidewalks adjustment along the 1.8km stretch of Lilian Ngoyi Street. This phase duration remains 12 months. However, due to delays in phase 1 the second phase will be completed on June 30 2026.”

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