DURBAN - THE eThekwini Municipality wants to extend a contract related to the supply, delivery and maintenance of buses for 12 months, pushing the cost of the contract up by R200 million.
The municipality now wants to spend just over R730m on the contract, according to a notice it has published for public comment.
The changes mean that the original contract valued at R517 691 540 would increase to R731 346 119.
The notice has raised questions from members of the outgoing council, who asked why the city would take out such a notice before a new council was sworn in.
The amendments on the contract tackle several aspects, ranging from changes in the technical specification of the buses and extending the time frame when the buses could be delivered, among others. It said the amendments were necessary because there were key conditions of the contract that could not be met because of challenges brought about by Covid-19.
In the notice calling for public comment, the city said that a service provider had been awarded the contract for the manufacture, supply, delivery and maintenance of commuter buses via normal tender processes that were in line with the supply chain process.
It said that under the proposal to amend the original contract, there would be minor deviations in terms of technical specifications. Among the changes was that the original specifications were for rear engine buses, but the ones that would be supplied would have front engines. Another specification change, it said, was the Euro ratings. It said the initial tender had called for Euro 5 emission compliance, but the buses to be supplied have Euro 3 emission compliance. This refers to the permissible CO2 emissions.
The city claimed that because of the changes the cost of these buses would be lower than the cost of the initially approved buses specified in the original contract. It did not give a breakdown of the original cost.
It said the amendments were necessary to allow the main supplier to meet some of the conditions of the contracts that could not be met due to the impact of Covid-19. It said the service provider was not able to source materials from overseas due to the pandemic and this had a negative effect on the manufacture of the buses.
In addition, the municipality said one of the conditions of the contract was that the service provider was to mentor a B-BBEE partner for the duration of the contract. It said the service provider was also expected to train graduates as part of skills development, but due to Covid-19 this did not happen.
IFP councillor Mdu Nkosi questioned why the city would amend the contract on the eve of a new council taking over.
He said the city should have waited for the new council to take over and briefed them on the developments before taking it out for public comment.
EThekwini Municipality spokesperson Msawakhe Mayisela said: “In terms of the provisions made in the regulations of the Municipal Finance Management Act, in order to amend a contract, a public process is required to be followed.”
He said the contract amendment was for the supply and delivery of commuter buses. “The Covid-19 pandemic has affected global supply chains, which has resulted in a delay in the production and delivery of commuter buses.”
Public comment must be sent by December 3 via email to [email protected] or delivered to 7th floor, office no 19, Florence Mkhize Building, Anton Lembede Street, Durban 4000. Further details can be sought via email to Nonkululeko.Gama@durban. gov.za or call 031 322 5064.
THE MERCURY