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AWARDED CONSTRUCTION WORKS HIKE TO 58%

03/08/2022 08:03:00 Mhlengi Magongo

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MBABANE - All local construction works except for foreign works increased.

This was mentioned by the Construction Industry Council (CIC) in the Eswatini construction industry Performance Report for the years 2019/20-2021/22. CIC said under the leading building works, the number of construction works awarded increased from 16 per cent in 2020 to 58 per cent in 2021 supported by COVID-19- related policy stance that construction works should continue as the industry was deemed to be rendering an ‘essential service’ by the government. The council said the overall hike in construction works observed between the years 2020/21-2021/22 was as a result of moving from an initial halt in operations during the earlier stages (2019/2020) of the advent of COVID-19 to commencement of operations in a number of construction works with projects.

Projects

They said the projects include Ministry of Public Works and Transport (MoPWT) completion of the remaining Manzini traffic circle to Mbadlane LOT2; construction of Siphambanweni-Nsalitje road; Siteki- Tikhuba road and Siphocosini-Sigangeni road. Other projects cited include Eswatini Investment Promotion Authority (EIPA) Kellogg Tolaram factory and the Ministry of Economic Planning and Development (MEPD)-Micro-Projects COVID- 19 project at TB hospital; water harvesting dams. CIC said the above mentioned were the projects that were included in the sum of contract share for the financial year 2020/21-2021/22. They said some of the companies awarded construction works for the above projects in 2021/22 were Construction Associates, Inyatsi Construction, Stefanutti Stocks Swaziland, J&E Constructions, Roots Civils, SR & GZ Construction, Scats Construction, Hydroware Mabili (Pty) Ltd, Sipimpi Investments, D.G.S.R Constrution (Pty) Ltd, Zethu Engineering, Buhle BeLubombo Investments PTY LTD, Grand Obtuse Electrical (Pty) Ltd and Contis Developers.

Awarded

“During the period under review, most construction works were awarded to contractors, participating under building works followed by those under civil works. The only construction works that showed an increase in the value of contract over the 3-year period were under building works,” said CIC in the report. Between the years 2019 to 2020, building works’ value of contract share alone increased by seven per cent, even though the number of contractors awarded work decreased by five per cent; and from 2020 to 2021, there was a further eight per cent increase of contractors awarded work under same at an increased contract value of 42 per cent.

During the year 2020, there was a decline in the number of construction works awarded for in all categories listed in the table above when compared to the previous year (2019); for instance, building works declined by nine per cent while civil works declined by 14 per cent owing to the prevalence of COVID-19. CIC said through market analysis, a qualitative and quantitative assessment of the current market in the construction industry was done using industry data. Building Works were awarded to general building works across the three years with leading categories being B3 in 2019 and 2020 and B4 leading in 2021. The leading building specialist works in 2019 were BSe-6 (structural steel fabrication, fixing and erection works), in 2020 and 2021 were BSh-6 (shop fittings, timber and carpentry works).

Over the three-year period, general building works that absorbed the largest contract value were in B1 whilst B5 were the least. Civil Works were awarded to general civil works across the years with C3 taking the lead for all the three years. The leading civil specialist works in 2019 were CSe-4 (drilling works), in 2020 were CSb-5 (road signage and marking works), and CSj-6 (fencing works), CSe-4 and CSb-5 in 2021. The first two years saw C1 absorbing the largest contract value and C3 in the last year.