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Construction

Construction of the flagship N2WCR project. (Image source: SANRAL)

The South African National Roads Agency SOC Limited (SANRAL) expects to award a further R3.8bn (approx. US$212mn) by the end of the year

The new flurry of awards follows R1.4bn (approx. US$79mn) the organisation has awarded in tenders in its Southern Region since the start of the 2024/25 financial year. These include the likes of the contract for the construction of the R61 section between Luqoqweni and Bambisana; the upgrading of the N2 section from Bloukfrans to Storms Rivers; and the contract for the slope stabilisation along the R61 section near Cofimvaba.

“Our accelerated road infrastructure build programme is on track to bring the state of the province’s road network to a pristine and safe driving standard while improving accessibility in rural and remote areas of the Eastern Cape,” remarked Mbulelo Peterson, SANRAL’s southern region manager. “Since the beginning of this financial year, we have awarded 12 road infrastructure contracts amounting to a total investment of R1.4bn. Furthermore, 24 tenders are in evaluation stage, and we anticipate these to be awarded in the last quarter of the year.”

More construction contracts to come

The contracts still expected to be issued before the year – most currently in the evaluation phase – include the upgrading of the R61 sections from All Saints to Bhaziya and between Qumanco and Ngcobo; the upgrading of the Pikoli to Glenmore access road from the N2 intersection; and the upgrading of the R62 from Louterwater to Kareedouw.

“The bulk of the investment will be in the Eastern part of the province, which is the most populous area of the Eastern Cape and where the road infrastructure is lacking,” continued Peterson. “Our focus will largely be around Mthatha as a key economic hub of the province with a total investment of around R5bn to improve mobility in and out of the city along the N2 from Viedgesvile to the city centre and later in 2025 on the R61 from the Mthatha Airport to Madeira Street.”

Left to right: Takuya Yamamoto, head of construction & mining equipment business unit No.2 Sumitomo Corporation; Romain Bia, deputy CEO BIA Group; Kenichi Hyuga, general manager, construction & mining system SBU Sumitomo Corporation; Vincent Bia, CEO BIA Group; and Damien De Prijck, CFO BIA Group. (Image source: BIA Group)

BIA Group, an exclusive distributor of Komatsu equipment and other OEMs in Africa, has formed a strategic partnership with Sumitomo Corporation, an operator of a diverse portfolio of businesses including a longstanding experience in the distribution of Komatsu equipment and rental

The two have agreed to partner with an eye to furthering the growth of their businesses and to generate synergies. The deal includes a minority investment by Sumitomo in the BIA Group and aims to bring together the two companies’ track records as Komatsu distributors and experience as independent OEM distributors in complementary geographies and industries.

Sumitomo Corporation will gain exposure to the mining and construction machinery market in the European and African geographies served by BIA Group, while BIA Group will benefit from Sumitomo Corporation’s global network and its experience in the distribution of Komatsu equipment in complementary geographies.

Meeting Africa's construction and mining needs

“We are very proud of the interest and trust shown by Sumitomo Corporation in partnering with BIA Group,” remarked Vincent Bia, CEO of the BIA Group. “This partnership allows BIA Group to set up new ambitions in the growing African market. By leveraging both companies’ long experience in the distribution of Komatsu equipment, we will be able to strengthen our market position by offering innovating solutions to our customers in the construction, mining, transport, and energy segments.”

Kenichi Hyuga, general manager, construction & mining systems strategic business unit, added, “We are delighted to announce our collaboration with BIA Group, a pioneer of distribution business in Europe and African countries for more than a century. We are committed to creating value through this partnership, leveraging the strengths of both companies to achieve sustainable growth. Sumitomo Corporation intends to contribute to the future development of BIA Group and the enhancement of customer satisfaction by investing its long-accumulated business management experience in mining and construction equipment distributors.”

The project carries an estimated total cost of US$12bn. (Image source: The Republic of Ghana Presidency)

The first phase of Ghana’s Petroleum Hub Project was kickstarted by President Nana Addo Dankwa Akufo-Addo breaking the ground at a commemorative ceremony in Nawule, Western Region

The project carries an estimated total cost of US$12bn and is being delivered in order to elevate the West African country’s standing as a key player in the continent’s energy landscape and address its power challenges. Developed in three independent phases, the hub is set to include a 300,000 barrels per day refinery, a petrochemical plant, and extensive storage and port facilities. When operational, it is expected to create approximately 780,000 direct and indirect jobs, help to stabilise the national currency, and stimulate local economic development.

“Today is a very good day for our homeland, Ghana,” remarked the President. “This project promises to be a cornerstone of our nation’s development, ensuring that all Ghanaian homes and industries have access to reliable, affordable, and environmentally sustainable energy.”

He continued by underscoring the strategic importance of the project, before adding that the new facility would not compete with existing refineries in the region, but rather complement them. He also highlighted the environmental considerations taken into the project design, including green buffers to support local fauna and flora.

TCP-UIC Consortium will lead the first phase of the project. This comprises several international partners and has been chosen for its technical expertise and financial capacity to deliver on the project’s timelines. The progression of the initiative is expected to lead to the establishment of the Jomoro Petroleum Hub Development Corporation (JPHDC).

The Forte Secondary School fulfils an important role of educating 2,400 learners. (Image source: Bell Equipment)

Bell Equipment, a South African manufacturer of mining, construction and agricultural equipment, has sponsored the refurbishment of a science laboratory at the Forte Secondary School in Dobsonville, Soweto, under the auspices of the South African Medical and Education Foundation (SAME Foundation)

The facility has now been officially taken into use – following an eight-week refurbishment period – and was marked by a special unveiling ceremony. It marks a happy milestone for Bell Equipment, which committed to getting involved in the project when it was approached by the SAME Foundation, a non-profit organisation which raises funds and manages socio-economic development allocations to improve the health and education environment in South Africa, in 2023. The Foundation has a track-record of completing more than 150 high-impact projects in the last 20 years, investing and positively influencing millions of South Africans.

Tyrone Pols, spokesperson for the SAME Foundation, commented, “We as a foundation were heartened when Bell Equipment showed its eagerness to become involved in this very worthwhile project at the Forte Secondary School. The science laboratory at this school was in a dilapidated state and with Bell Equipment’s generous funding, we could oversee the replacement of the floor, ceiling, windows, doors and security gate as well as several coats of durable paint.

“We could then order new laboratory benches, stools and cupboards before new laboratory equipment applicable to the curriculum was acquired. Advanced technology has been added with a touch-screen white board and digital projector.”

Bruce Ndlela, Bell Equipment’s director: business and public sector development, added, “We as Bell Equipment employ around 4,000 people world-wide and, as we’ve assisted in the refurbishment and equipping of many similar laboratories and centres of learning in South Africa, it shows that we believe in our youth and the potential that they show.”

141 urban roads and 20 rural roads will be constructed. (Image source: Adobe Stock)

The Enugu State Government has pledged N183bn (approximately US$115mn) for the development of road infrastructure across the state

According to an announcement on the Government website, the approvals were confirmed at the end of the State Exeutive Council meeting and approved funding that will see the construction of 141 roads across Enugu metropolis 20 rural roads across the three senatorial zones of the state. Additional funding was also approved the delivery of 133 more smart schools.

These projects are in furtherance of Governor Peter Mbah’s determination to grow the state’s economy from US$4.4bn to US$30bn, achieve a 0% poverty headcount index as well as position the State as a premier destination for business, investment, and tourism explained Chidiebere Onyia, Secretary to the State Government.

“Recall that before now, the state’s total budget hovered around N100bn and N120bn with capital expenditure of about N30bn or capital expenditure to budget ratio of about 25 to 35%,” stated Onyia. “However, in keeping with Governor Mbah’s promise to de-risk investments, boost production, and run a lean and prudent government, the governor proposed an unprecedented N521.5bn 2024 budget with a capital expenditure totaling over N400bn, which is an equivalent of capital expenditure to budget ratio of about 80% and recurrent expenditure ratio of about 20%.

“Accordingly, the theme that we took away from Exco today is doubling down. The Government is doubling down on infrastructure. If you recall, we started with 71 urban roads and 10 rural roads last year. Now, the governor and the Executive Council have also approved 141 urban roads and 20 rural roads.”

He continued by noting that although there are fewer rural roads in number, the scale of the work is actually greater – three times those approved for the metropolis in terms of kilometres.

“This is part of the strategies to improve the quality of life in the rural communities and importantly to de-risk investments in agriculture,” continued Onyia. “Outside security, which we are effectively dealing with, the big elephant in the room is to scale-up the production and movement of produce from farmlands to the market. We also understand the need for processing, hence the heavy investments in road infrastructure.”

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