Cape Town - Murray & Roberts announced on Friday that a comprehensive settlement of R1.274 billion has been agreed over the disputes relating to the Gautrain project's development period.
The deal brings to an end a protracted legal battle between the Bombela Civil Joint Venture (BCJV), the subcontractor responsible for the design and construction of the Gautrain system, which was completed in 2012, and the Gauteng provincial government. BCJV, whose shareholders are Murray & Roberts, Bouygues, and Strategic Partners Group, lodged a number of construction-related disputes over various delays and disruptions.
In terms of the conditional settlement, the Gauteng government would pay BCJV R980 million within five days of the fulfilment date, as well as payment over two years of a capped amount of R294 million.
It was expected that the suspensive conditions would be met by mid-December. A statement, Murray & Roberts added that the agreement represented full and final settlement of all development period disputes between the parties.
The company added that it believed that the settlement was in the best interests of all stakeholders
AFRICAN NEWS AGENCY