Tuesday, 22 November 2016 13:07

Murray & Roberts's shares jump after Gautrain agreement

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Murray & Roberts's share price jumps as much as 18% to R12.87 as it announces the Gauteng provincial government agrees to pay nearly R1.3bn in disputed Gautrain bills.

 Henry Laas Murray

Construction group Murray & Roberts’s share price jumped as much as 18% to R12.87 on Friday after it announced the Gauteng provincial government agreed to pay nearly R1.3bn in disputed Gautrain bills.

Murray & Roberts said an arbitration process between its 33%-owned Bombela Concession Company and the Gauteng government had reached a settlement whereby Bombela will be paid R980m within five days‚ and up to a further R294m over two years.

This settles four disputes between the Gautrain consortium and the provincial government.

The first was the Sandton Station “cavern” claim relating to the cost of construction of the station utilising a construction methodology different to the tendered methodology.

The second was for the John Vorster and Jean Avenues cantilever bridges claim whereby additional costs were incurred following a design change.

The third for delays and disruptions that the construction group argued was due to the late handover of land.

The fourth dispute was due to the water ingress into the Gautrain’s tunnels being foreseen‚ leading to additional costs.

source: BDpro

Last modified on Thursday, 14 September 2017 12:55

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Murray & Roberts

Murray & Roberts is South Africa’s leading engineering and construction services company. It has delivered infrastructure throughout South and Southern Africa for more than 110 years and is today recognised as an international engineering and construction…