The South African National Roads Agency has announced that it is suspending the process of pursuing e-toll debt.
CAPE TOWN – The South African National Roads Agency (Sanral) said on Friday that it would continue to protect its interests in a construction contract with the Aveng Strabag Joint Venture (ASJV) to build a bridge on the Wild Coast.

Aveng said last week that it planned to appeal a high court judgment that dismissed an ASJV application to prevent Sanral from claiming contract guarantees against the joint venture, after ASJV terminated the contract in February due to civil unrest on the site.

The ASJV had provided two bonds as contract securities: a performance guarantee for R245million and a retention money guarantee for about R82m.

“Sanral is preparing to enter a dispute adjudication process with the contractor in relation to its abandonment of the project site and the consequent termination of the contract by the Sanral board as a result of the breach,” Sanral communications manager Vusi Mona said in response to questions from Business Report.

Sanral said there had recently been community protests, which had a minor impact on the design consultants for the N2 section between Msikaba and Mtentu, which would have had a serious impact on the Mtentu Bridge had the contract not been terminated.

The protests were directed towards the Ingquza Hill Municipality around service delivery and a demand for the Holy Cross to Mkambati road to be surfaced.

BUSINESS REPORT