Infrastructure development benefits smaller BEE companies

IN LINE with the government’s policy of supporting emerging contractors through more access to socio-economic opportunities, the Gauteng Department of Public Transport, Roads and Works has awarded contracts worth more than R7 billion to 1 687 BBBEE (Broad Based Black Economic Empowerment) and 1 139 SMMEs (Small, Medium and Micro Enterprises) over the past three years, including procurement of services and subcontracting. The value of these contracts amounted to around R4 billion for BBBEE and R2 billion for SMMEs while the construction of the Gautrain has seen R1.89 billion being allocated on procurement and sub-contracting to BBBEEs and SMMEs in the 2007/8 fiscal year alone. MEC Ignatius Jacobs says: "Economic barometers are showing that government is playing a major role in the growth and development of the economy in Gauteng Province. This is a major departure from the past where government played a passive role in the economy. We have also created thousands of jobs for the residents of our province.” The department is also running a support programme for emerging contractors who have been awarded construction contracts under the auspices of a trading entity known as Impophoma Infrastructure Support Entity. It leases fleet and plant equipment at reasonable prices to SMMEs to ensure that they become sustainable concerns. Construction contractors also receive assistance with Construction Industry Development Board (CIDB) registration plus free training on business planning, modelling and marketing. This takes place at three dedicated Construction Contact Centres in Johannesburg and Tshwane.