BUSINESS NEWS
R1.5bn water pipeline contract signed
Posted Wed, 30 Nov 2005
A R1.5-billion contract to build a 121km pipeline to increase water supply for the planned expansion of Sasol and Eskom was signed with the Mpumalanga Pipeline Contractors consortium on Tuesday.
Construction of the pipeline would start next month, and was expected to be completed by October 2007, state-owned liability management company TCTA said in a media statement.
The TCTA is managing the construction of the project, dubbed the Vaal River Eastern Subsystem Augmentation Project for the government.
The pipeline is to run from the Vaal Dam near the Vaal Marina to a distribution structure at Knoppiesfontein near Secunda.
The consortium tasked with the construction was a joint venture comprising Murray and Roberts Construction, the J & J Group, WK Construction and Group 5 Construction, the TCTA statement read.
A further contract for civil structures, mechanical and electrical instrumentation and piping works would be signed in due
course.
"The total capital value of the project is R2.5-billion, making it one of South Africa's largest current infrastructure projects," the TCTA said.
The project would be funded by loans to be repaid over 20 years through a user charge to Eskom and Sasol.
On completion, the project would be able to pump about 160 million cubic metres of water a year through a 1.9m-diameter pipe. It was expected to generate about 750 jobs during construction, and 20 permanent ones during the project's operational phase.
At least 40 percent of jobs on the project were required to be filled by local labour, and 75 percent by historically disadvantaged individuals, the statement read.
Targets have been set for the procurement of goods and services from black empowerment companies, local firms, and small and medium enterprises.
The project would not have any impact on current levels of assurance to Vaal Dam water users.
Sapa
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