STATUS OF THE GAUTRAIN DISPUTES BETWEEN THE GAUTENG PROVINCIAL GOVERNMENT AND THE BOMBELA CONCESSION COMPANY

Posted on May 31, 2016 in Featured, Media Releases

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The Gauteng Provincial Government has studied the Arbitration Tribunal’s Awards dated 2 March and 4 May 2016 in respect of the Sandton Station Cavern dispute and notes the various media comments made by shareholders in the Bombela Concession Company, the Concessionaire for the Gautrain System, in regard to this and other disputes between the parties. The Province also notes the recent SENS issued by Murray and Roberts in this regard. Murray and Roberts is one of the main shareholders of the Concessionaire.

The Sandton Cavern dispute relates to the difference in costs arising from the change in the method of construction of the Sandton Station from an open-cut excavation to an underground cavern excavation.

 

After thorough legal review, the Province is of the view that there are key aspects of the award that warrant further steps in the dispute resolution process, and as such has approached the High Court for a review of the decision. The date of the review has not been finalised as yet.

The Province does not believe that the award has any relevance to the Delay and Disruption dispute that is in the early stages of determination by arbitration. The Concessionaire’s claim is essentially for delay and disruption costs arising from the delivery of land by the Province to the Concessionaire. The Province will vigorously defend this claim by the Concessionaire on the basis of Senior Counsel’s legal advice on the matter.

 

The Province is studying the award with regard to the Cantilever Bridges over the N1 and N14 highways and is seeking legal advice in relation to the award.

 

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Issued by: Mr William Dachs
Acting Chief Executive Officer: Gautrain Management Agency

Contact: Dr. Barbara Jensen

Senior Executive Manager Communication and Marketing, GMA

 

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