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Gauteng govt to cough up R1.3bn in Gautrain settlement

Nov 18 2016 13:43
Lameez Omarjee
Gautrain

(Zulfa Petersen, News24)

Company Data

MURRAY & ROBERTS HOLDINGS LIMITED [JSE:MUR]

Last traded 12
Change 0
% Change 0
Cumulative volume 36125
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg – The Gauteng government and Bombela Concession Company (BCC) will pay R1.3bn in a settlement of disputes related to the development of the province's high-speed rail link.

Construction firm Murray and Roberts (M&R) issued a statement on Friday to shareholders saying that the Gauteng Provincial government (GPG) will pay out R980m to the Bombela Civil Joint Venture (BCJV).

M&R is a 45% shareholder in BCJV. M&R also has a 33% stake in BCC.

CORRECTION: Fin24 previously reported the figure to be R249m. The correct figure is R294m. 

This will be accompanied by a payment of R294m over two years. This settlement covers disputes relating to the Gautrain project’s development period.

The Gautrain project involved a public and private partnership. BCJV was responsible for the design and construction of the transport system.

Firms Bouygues and Strategic Partners Group are also shareholders, with stakes of 45% and 10% respectively.

The disputes are related to additional costs incurred during the development of the Sandton station and the John Vorster and Jean Avenues bridges.

There was also a delay and disruption claim which covers 140 individual claims that interrupted the construction. There was further a dispute related to the development of a water ingress, which was “in excess” of the contract specification.

M&R said that the settlement is in the “best interests” of all stakeholders. 

Following the news, M&R's share price was up by more than 11% at R12.10, at 13:30 on the Johannesburg Stock Exchange (JSE).

Read Fin24's top stories trending on Twitter:

murray & roberts  |  gautrain  |  gauteng  |  settlement
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