An announcement on Tuesday that major construction group Concor has entered a voluntary business rescue process has cast a shadow over some of the Eastern Cape’s most significant infrastructure projects, raising questions about their future, the jobs attached to them and the local businesses relying on the work.
Concor entered voluntary business rescue on October 6, with four entities — Concor Holdings, Concor (Pty) Ltd, Concor Construction and Concor Mining Services — placed under the supervision of joint business rescue practitioners Nndingeni Moses Singo and Paula Anna-Mart Müller.
The group is involved in several massive Eastern Cape projects, including the Msikaba Bridge on the N2 Wild Coast Road, the Wolf Wind Farm, the Phezukomoya Wind Energy Facility near Noupoort and the rehabilitation of the R75 between Gqeberha and Kariega.
The Msikaba Bridge, which being built by a joint venture between Concor and Mota-Engil Construction South Africa, has already experienced substantial delays.
Designed to be one of the most striking features of the N2 Wild Coast route, the Msikaba Bridge is a dramatic 580m-long cable-stayed structure suspended high above the deep Msikaba gorge, with a 260m main span.
Its elegant design will carry the road across the gorge without the need for piers in the river below, preserving the spectacular natural setting.
Originally scheduled for completion in 2022, the project has since been pushed back, with more recent reporting indicating 2029 as the expected completion date.
In March, before Concor's business rescue began, SANRAL said work was continuing and the contract remained intact and binding, with sufficient budget allocated.
It attributed delays to cash-flow and production constraints, including difficulties with steel deck fabrication.
The position following Concor's entry into business rescue could not been confirmed for publication.
SANRAL’s media relations manager, Lwando Mahlasela, indicated that he would respond to questions by Thursday or Friday.
The joint business rescue practitioners had not responded by the Daily Dispatch’s print deadline.
The implications extend beyond the construction sites. Concor's company profile refers to more than 1,800 employees across its construction and mining services operations, many based at project sites.
The extent to which those jobs, including Eastern Cape employment, are affected by the rescue has not been established.
The Public Investment Corporation manages the investments of the Government Employees Pension Fund and the Unemployment Insurance Fund, which hold stakes in Concor.
The PIC has said it will work with the business rescue practitioners to assess whether a sustainable rescue is possible, while seeking to protect its clients' investment, jobs and active projects.
The Wolf Wind Farm is another significant Eastern Cape project involving Concor, which undertook civil balance-of-plant work, including turbine foundations and access roads in the Klein Winterhoek mountain range.
The business rescue process will determine whether the group can continue operating and meet its obligations.
For the Eastern Cape, the immediate concern is the continuity of major infrastructure work and the contractors, workers and local businesses connected to it.
Concor’s involvement in the Eastern Cape’s infrastructure stretches back decades.
Its company history records the construction of the Storms River Bridge in the 1950s and the Bloukrans River arch bridge, while its more recent work includes major contracts at the Port of Ngqura and Coega.
The company has also been involved in several wind-energy projects in the province, including the Jeffreys Bay wind farm.
