A Review of Highway Agencies in the South Asia Region

A Review of Highway Agencies in the South Asia Region
Environmental Management
SANRAL activities have been certified to comply with the ISO 14001 Environmental
Management System (EMP). SANRAL uses a general EMP and a site-specific EMP in all its
contracts. During the planning phase, the preliminary investigations include environmental
screening and environmental impact assessments. The higher goal of this is to contribute
to the realization of the Millennium Development Goal of ensuring environmental
sustainability
The Environment Conservation Act, 1989 (Act No. 73 of 1989) regulates the control of
activities which may have a detrimental effect on the environment. The environmental
impact assessment (EIA) process is aimed at assessing the potential environmental
impacts and the proposed mitigation measures, and to ensure that all issues, concerns
and queries raised are fully documented and carried forward in the EIA process. Interested
and/or affected parties can contribute and express their views in the process. The term
‘environment’ in the context of an EIA refers to both biophysical and socioeconomic issues.
Private Sector Participation and Procurement
Procurement
SANRAL has a management and financial focus with all service delivery outsourced which
includes design, inspection, surveying, supervision, overload control (apart from law
enforcement), traffic and safety management, and the carrying out of maintenance and
construction works.
Procurement opportunities at SANRAL are published publicly, including the opportunities
for small contractors. The publication is the start of a process of prequalification,
adjudication and, finally, award of the contract. Social objectives in opportunities
relate to the use of local labor and women, thereby complying with the principles of
the Reconstruction and Development Program. Project Liaison Committees, the main
contractor and members of the local community, are established for each of these projects
to oversee the socioeconomic requirements.
SANRAL’s procurement policy is aimed at stimulating growth of SMEs, promoting Black
Economic Empowerment and training for historically disadvantaged South Africans. In
particular for routine road maintenance, SANRAL revisited its model contract resulting in a
situation where:
The main contractor operates as a management contractor while 80 percent of the work
or more carried out by small contractors; the main contractor is responsible for training
and mentoring the subcontractors;
Consulting engineers are hired for the design and supervision in addition to a SANRAL
road manager;
Low entry barriers for small contractors are maintained; and
There is no exploitation of small contractors.
Public Private Partnerships
Over the past 10 years, SANRAL has successfully completed three PPPs: N4 Maputo
Development Corridor, the N3 Toll Road, and the N4 Platinum Highway. These toll roads are
financed and maintained by private sector companies. No funding is undertaken by SANRAL
for these projects and they do not form part of the balance sheet. SANRAL applies, inter
alia, the BOT model or variants thereof. The concessionaire is required to fund, design, build,
operate and maintain the road for the duration of the concession period. In this instance,
the toll revenue accrues to the account of the concessionaire. The Model Concession
Agreement (over a 30-year term) sets out a precise and regulatory framework to reduce
uncertainties, and apportion risks and rewards between public and private partners. As a
result, additional resources are available from the fiscus for non-toll roads and ensure an
economically balanced national road network. Furthermore, it allows for the integration of
new technologies such as IMS and Intelligent Transport System in the pursuit of reducing
congestion, and increased road safety.
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