South Africans will work on ORT, says minister

2011-03-29 12:41

Although the tender for the Open Road Tolling (ORT) system project was awarded to a foreign company, more than 90% of staff on the project will be South African, Transport Minister S’bu Ndebele said today.

“It can be reported that 99% of ETC JV staff for the operations of the system will be South Africans. Furthermore, during the construction of the civil works, 20 000 direct jobs were created,” said Ndebele.

“This project has therefore contributed to job creation and will continue to do so,” he said.

He was responding to a question in the National Assembly by Anton Alberts of the Freedom Front Plus.

Alberts asked the minister why the tender for the management of the collection of toll fees for the ORT was awarded to a consortium of which a foreign company was the majority shareholder and not to a local company.

ETC JV, a joint venture comprising one local and two foreign companies, was granted a R6.22 billion tender to implement and run the Gauteng road tolling system.

Swedish and Austrian branches of Kapsch TrafficCom, an international supplier of intelligent transportation systems, hold stakes of 40% and 25% of ETC JV respectively. TMT Services & Supplies, a South African company, holds 35%.

Ndebele said the tender was awarded to ETC JV because it had submitted a tender offer which was more than R2 billion cheaper than the next lowest tender offer and because the equipment and software to be used in the project was not locally available.

He said the SA National Roads Agency Limited (Sanral) also required foreign companies of ETC JV to put up guarantees in excess of R1 billion in support of their ability to perform their obligations.

This amount was “far in excess” of that which could be offered by any South African company in this sector, he said.

To ensure that South Africans benefited from the project, the contract required the contractor to continuously transfer skills and ownership and employ South Africans in all positions throughout the lifespan of the project.

Ndebele said these requirements would be monitored and the contractor would receive stiff penalties for failing to adhere to the requirements and commitments made.

“The contract has very specific measures and penalties to ensure that the contractor fulfil its contractual obligations. This project has contributed to job creation and will continue to do so.”

He said tender process was in line with South Africa’s commitment to attract investment and skills and that local companies were not excluded from the tender process.

The tender was awarded through a public tender process taking into account the available skills in South Africa.

The objective was to ensure that a quality product would be delivered, said Ndebele.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.