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The South African National Roads Agency (Sanral) has announced a new transformation policy that will see the organisation only working with companies that have 51% - or more – black ownership and a minimum B-BEE Level 2 rating. A maximum of 15 tenders per year will be issued to a single company and contractors will be required to make use of Sanral-approved sub-contractors, the Agency said in a statement.

Sanral announces new transformation policyFuture contracts will set requirements for the utilisation of labour sourced from local communities and favour the procurement of locally-developed materials, equipment and technology. The same provisions will apply for road maintenance projects “to ensure the broad-based participation of local companies and communities”. Special attention will be given to the procurement of innovative road furniture and road safety material from black suppliers, Sanral said.

In addition, concessions to manage and operate toll roads will only be awarded to companies with a 51% black ownership. To reduce monopolies Sanral will limit the number of contracts awarded to established and dominant industry players. The Agency will encourage joint ventures, consortia and other partnerships and structure projects to guarantee “balanced and fair access” to black contractors at CIDB levels 1-9.

Black real estate and property developers will be allocated all Sanral-related business on contracts below R100 million and the 51% requirement will apply for larger developments. Sanral's transformation policy will also apply to all sub-contractors in the fields of information communication and technology, professional services, finance and audit and marketing and communication. In addition, contracts will include detailed provisions for sub-contracting to small and micro enterprises.

This policy has been approved by the Board of Sanral and will now be canvassed with stakeholders including national and provincial government departments, the engineering and construction sectors, existing suppliers and contractors and labour. Sanral is inviting written submissions on the policy, and will go on a road show until the end of the year to consult stakeholders. The Agency hopes to implement the final policy by April next year.

“Sanral plays a critical role in the construction and related industries. We are keenly aware of the impact our procurement practices have on economic transformation, job creation and the lives of millions of people across South Africa. We accept the responsibility to use our procurement and supply chain processes to transform the construction industry and Sanral is confident that this will be a catalyst for a much broader-based participation of black-owned companies in the sectors,” says Skhumbuzo Macozoma, Sanral’s CEO.

Image credit: http://www.nra.co.za/live/content.php?Session_ID=d94dbc9d30a06587a6b60871f112f98f&Item_ID=5051

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