MEDIA STATEMENT

NDEBELE LAUNCHES CONTRACTOR COUNCIL

KwaZulu-Natal Transport MEC S'bu Ndebele will launch a contractor council tonight aimed at boosting black emerging road contractors in the province.

The launch of the Vukuzakhe Emerging Contractor Council regarded as the first of its kind in the country, will be held under the theme "Laying the foundation for an equitable construction industry".

The Vukuzakhe Emerging Contractor Programme has registered more than 17 000 emerging contractors on the provincial Transport Department's database. These emerging contractors have in turn provided employment to more than 25 000 people in the province.

The main thrust includes maximising job creation and restructuring contracts in order to secure collective participation by emerging contractors and established contractors within the department's road contracts.

In 2001, the department began addressing training needs to assist contractors run their businesses profitably after undertaking millions of Rands in contracts with the department.

KwaZulu-Natal MEC for Transport Mr. S’bu Ndebele added that the growth of Vukuzakhe from a zero budget to contract values of more than R408 million in last year's financial budget is also a truly remarkable achievement. "In this regard there would be an increase in Local Roads and the African Renaissance Roads Upgrading Programme (ARRUP) budget allocations in the next two financial years. The department will also adopt a more embracing understanding of Vukuzakhe training needs to include sponsorship and graduation of black engineers and technicians," Ndebele said.

"It is in this process that the department will establish a new bursary fund to be administered in consultation with the Council to promote engineering in black communities. The department has allocated R25 million towards labour intensive road construction this financial year and expects to raise significant additional funds from the Expanded Public Works Programme (EPWP). Our department through its policies and programmes has created new and sustainable jobs in the construction sector while the province has shed jobs in other influential sectors," said Ndebele.

Some of the benefits of the Vukuzakhe Council will include:

• Multi-year contracts will enable the contractors through the Vukuzakhe Council to approach financial institutions using their contracts as collateral against bank loans.
• We are now finalising our partnership with a major financial institution who have established an independent management company to assist the Vukuzakhe Council with various financial, training and business support systems including access to bulk discounts on materials and plant.
• This institutional arrangement makes provision for an empowerment equity stake for the Vukuzakhe Council in the management company.

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