20th Anniversary of the Power Group

April 2003

Sibakhulu Construction

Moving earth at Ngqura Harbour
Sibakhulu Construction one of two contractors on site has been tasked with the bulk earthworks of the quay walls and the harbour basin excavation of Ngqura Harbour in Port Elizabeth and has already moved more than a million cubic metres of earth.
Subcontracting to Ngqura Harbour Contractors (NHC), Sibakhulu has been awarded the contract for the excavation and redistribution of 5 million cubic metres of earth over a 17-month period.
According to site agent Fahiem Ortell “of the total earth excavated + 2 million cubic metres is being moved to the western reclamation to form part of the buildings and offices that will eventually form the harbour administrative base”
A further + 1.5 million cubic metres will be moved to the eastern reclamation area, which once completed, will form the area for the re-establishment of the endangered species of flora that was removed at the commencement of the contract to an area of safekeeping. The balance will go to the outer basin that will form the stacking areas for the containers in the future.
“In terms of the contract stipulation we are required to move an average of 18 000m³ a day – which we are achieving comfortably” said Ortell. If this progress continues, the company expects to complete its contract ahead of schedule.

“The basin excavation will be done to + 17m below MSL. As we go deeper we expect the conditions to become more difficult. Although they have a well-point system on the perimetre of the excavation, we expect the ingress of water and the hardness of the material to make life a little more difficult, but we have the right equipment and the people to complete this contract successfully,” said Ortell.

This R8-m contract is by far the largest contract ever undertaken by Sibakhulu Construction, an affiliate of the Power Group of Companies. Ortell said “the construction of the Ngqura deepwater harbour is a significant milestone in South Africa’s development, providing the Eastern Cape with much needed investment. We are proud to be associated with the construction of this world-class project.”
Emerging contractors still face uphill battle
Although lauded as an excellent way of redressing the economic imbalances brought about by Apartheid, Black Economic Empowerment (BEE) has come under fire from some sectors in the country. One of the criticisms levelled against it is that those who benefit from it are those with political connections or that wealth is merely rotating within certain circles and not trickling down to those who need to be empowered. This also applies to the construction industry where many emerging contractors still feel left out in the cold. Despite this criticism, many emerging contractors have had success stories and efforts have been made by various role players to assist emerging contractors. Karen Makgamathe spoke to some of these role players and emerging contractors to find out how far efforts to assist emerging contractors have gone.

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An emerging contractor is a black contractor whose annual turn over is less than R5million. Emerging contracting companies are often regarded as high-risk businesses run by inexperienced management and many of them find it difficult to remain afloat for lengthy periods.
In line with the government’s policy on Black Economic Empowerment, various industries that Historically Disadvantaged Individuals (HDI’s) were previously excluded from are now opening their doors and transforming by trying to create an environment whereby they can participate and thrive. One such industry is the civil engineering industry. However, many emerging contractors still face many challenges, the main challenge they face is the lack of capital. Recognising the challenges that emerging contractors face, the Department of Public Works and other civil engineering bodies have set up programmes to assist them.
The Department of Public Works and the Emerging Contractor Development Programme
In an effort to assist emerging contractors, the Department of Public Works has set up the Emerging Contractor Development Programme (ECDP), also known as ‘Sakhasonke’ (building together). The objective of the programme is to help emerging contractors overcome some of the obstacles that stand in their way of emerging into the mainstream construction industry.
The programme, which was launched as a national initiative in 1997, has offices in each region, which consist of a help desk and a database of emerging contractors. The help desk plays advises emerging contractors on support provided by bodies such as the Ntsika Tender Advice Centres and Khula’s financial services.
The Construction Industry Development Board has begun plans to compile a register of contractors and projects; they hope to have completed this registration by the year 2005. With regards to the CIDB’S plan to set up a register of contractors and projects, German Mphahlele, Director of the ECDP, said, “this register aims to do a number of things, such as supporting risk management in the tendering process; reducing the administrative burden associated with the award of contracts; reducing tendering costs to both clients and contractors; enabling effective access by emerging contactors to work and development opportunity; assessing the performance of contractors in the execution of contracts and thus provide a performance record for contractors.” He also said the register will regulate the behaviour and promote minimum standards and best practice, store and provide data on the size and distribution of contractors operating within the Industry and the volume, nature and performance and development of contractors and target groups and to enable access by the private sector and thus facilitate provide sector procurement. According to Mphahlele, the CIDB register covers all contractors emerging and non-emerging, and its purpose is much wider than that of the ECDP database.