Swazi Observer

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STEFANUTTI SA LION’S SHARE IN E2.6BN TENDERS

By KWANELE DHLADHLA | 2020-10-31

In recent times, Prime Minister Ambrose Mandvulo Dlamini has continuously pledged that priority will be given to local companies when it comes to local projects.

This appears to be a much-needed promise from the head of government after it emerged that a large percentage of the E2.6 billion that was available through public projects in the construction industry went to a South African entity.

Contrary to the popular narrative that local construction giants, Inyatsi Construction, was being awarded most of the big tenders in the country, actually it is Stefanutti Stocks that got a bulk of the projects for the 2020/21 financial year.

Stefanutti Stocks South Africa and its subsidiary Stefanutti Stocks Swaziland have been awarded eight projects with a total value of E1 457 903 330, which is 54 per cent of the total value of the capital projects.

Of this, 42.98 per cent or E1 153 878 981 went to Stefanutti Stocks South Africa – something that places questions on a provision in the Public Procurement Regulations, which states that Eswatini companies will be granted preferences in the evaluation of tenders in public procurement.

Projects

This has also been viewed by industry players as going against the pledge made by Prime Minister Mandvulo Dlamini to the effect that Eswatini companies would be prioritised when undertaking capital projects, especially when improving the country’s road network.

Furthermore, it raises concerns of capital flight - where foreign investors repatriate capital back to their home countries.

Information released by the Construction Industry Council shows that Stefanutti South Africa was awarded the biggest available project which is the development of the Manzini Golf Course Interchange to the value of E421 623 562.

This project is under the Ministry of Public Works and Transport.

The SA company also got the second and third biggest tenders that are to the value of E338 441 826 and E304 271 769, respectively.

These projects, which are under Category A public enterprise Eswatini Water and Agricultural Development Enterprise (ESWADE), are for the construction of a secondary distribution system, pump stations and roads at Matata block – off take 1 -3 and off take 4 and 5 – as part of the LUSIP II development.

Stefanutti Stocks Swaziland, on the other hand, got the fifth biggest job available, which is the construction of the Ezulwini Referral Hospital – a project that is owned by the Clinix Health Group (Pty) Ltd and comes at the value of E223 891 919.

Tenders

The other tender that Stefanutti Stocks Swaziland has been awarded is the construction of Buhleni Plaza, which is a project owned by Buhleni Plaza and is worth E80 132 420.

This brings the total value of tenders given to Stefanutti Stocks Swaziland to E304 024 349, which is 11.32 per cent of the total value of capital projects.

Stefanutti Stocks South Africa, meanwhile, was also awarded the tender for the construction of VHP bag warehouse and packaging station at Ubombo Sugar Mill, which is worth E62 547 813 and is owned by Eswatini Sugar Association.

The penultimate tender given to the SA company is worth E24 990 743 and is for the supply, installation of irrigation system for 173 hectare schemes at Siphofaneni.

This project is under the Ministry of Economic Planning and Development.

The last tender that Stefanutti Stocks SA has been given is for earthworks at Eswatini Communications Commission (ESCCOM) in Ezulwini, where the commission is building its new head office.

The tender is worth E2 003 258 and is owned by ESCCOM, which is also a Category A public enterprise.

While Stefanutti Stocks got all these tenders, 43 other companies had to share tenders worth the remaining E1.2 billion.

Of this amount, Consolidated Power Projects – Energy Solutions got E253 789 842 for the construction of the Lavumisa Solar PV Project, which is under the ownership of the Eswatini Electricity Company.

This is 9.45 per cent of the total value of the public projects.

For Inyatsi Construction, the share of the pie was a meagre one, as it got a slice worth E173 053 048, which is equivalent to 6.4 per cent of the E2.6 billion total value of the public projects.

The biggest job that Inyatsi got is for the extension of bulk earthworks and civil works for the International Convention Centre and Five Star Hotel (ICC&FISH) in Ezulwini – a project under the Ministry of Economic Planning and Development and valued at E153 106 661.

Inyatsi also got a E14 586 137 worth tender for the construction of community feeder roads for MR3, which is a project under the Ministry of Public Works and Transport.

Construction Associates – a subsidiary of Inyatsi – got two tenders worth a combined figure of E24 564 907, which is 0.9 per cent of the total value of the public projects.

Combined, Inyatsi and Construction Associates netted five tenders worth E197 617 955, which translates to 7.3 per cent of the total public projects’ value.

Roots Civils got one tender worth E189 376 220, which is for the construction of the Kellogg’s Tolaram factory in Matsapha – a project under the Eswatini Investment Promotion Authority.

Pots Construction got two tenders worth E47 189 510 (1.76 per cent); Du-Van Developers got one valued at E3 076 070; and AG Thomas got two tenders valued at E10 443 674 (0.389 per cent). Stefanutti Stocks Eswatini is an established and respected general contractor within the Eswatini construction industry, and has completed numerous contracts for both the public and private sector. It first established operations in Eswatini (as S&B Swaziland) in the late 1980s, after completing one of the Royal residents. Today, the company has grown to become one of the biggest contractors in Eswatini undertaking building construction, civil projects and roads and earthworks contracts.

The company has completed a broad range of projects, including the King Mswati III International airport, LUSIP main canal and the Public Service Pension Fund office park in Mbabane.

Stefanutti Stocks also has established general construction contracting companies in the following countries: Botswana, Mozambique, Namibia, Eswatini and Zambia.

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