Johannesburg pays R185 million for street reconstruction — Daily Maverick
In Johannesburg, South Africa, R185 million has already been paid to two contractors for the reconstruction and upgrade of 1.8 km of Lilian Ngoyi Street. Work on the second phase of the project, which had been planned for completion by the end of August 2026, is now expected to be finished no earlier than October 31, provided that payments to contractors are made on time.
As Daily Maverick reports, the project’s total budget is R230 million. The Johannesburg Roads Agency (JRA) paid R166 million to Korone Engineering, which replaced the original contractor. Another R19 million was paid to Step Up Engineering before its contract was terminated in August 2024 due to problems with the execution of the work.
Reconstruction after the explosion
The work began after an underground explosion on July 19, 2023, which severely damaged around 450 metres of the street. One person died at the time, while dozens of vehicles, mostly taxis, were damaged. City authorities decided not to limit the work to restoring the affected section and expanded the project to cover the entire 1.8 km corridor.
The project includes the relocation of municipal utilities, work on sewerage, water and stormwater systems, reconstruction of the road and pavements, and the installation of lighting, traffic lights, bus stops, street furniture and landscaping. Johannesburg Mayor Dada Morero said the city seeks to comprehensively upgrade the entire street.
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Costs and new deadline
The R185 million paid to contractors amounts to approximately 80% of the allocated budget, while the JRA estimates the project’s overall physical completion at 72%. At the same time, expenditure and the actual volume of completed construction work do not necessarily increase at the same pace. Payments for consultants’ services are made under a separate contract and are not included in the value of contracts with contractors.
According to the JRA, the second phase was 70% complete in March and 72% complete in August. The agency also reported that heavy rains and difficulties with existing utilities caused an 18% delay. In the latest report, road surfacing and pavement construction were estimated at 35%, road layers at 48%, lighting and traffic lights at 50%, and new stormwater pipes at 68%.
The JRA acknowledged that the pace of work was affected by recent operational cash-flow constraints. The agency said full-scale construction resumed after payment issues were resolved. Businesses on Lilian Ngoyi Street complain about prolonged excavations, dust, limited access to shops and traffic detours. The city said no financial compensation is provided to traders because the Gauteng provincial government did not officially declare the July 2023 explosion a disaster.
