MURRAY & ROBERTS HOLDINGS LIMITED - Gautrain water ingress ruling

Gautrain water ingress ruling

MURRAY & ROBERTS HOLDINGS LIMITED

(Incorporated in the Republic of South Africa)

Registration number 1948/029826/06

JSE Share Code: MUR

ADR Code: MURZY

ISIN Code: ZAE000073441

(“Murray & Roberts” or the “Company”)





GAUTRAIN WATER INGRESS RULING



An arbitration award has been made in the dispute between the Gauteng Provincial

Government (“Province”) and the Bombela Concession Company (“Bombela”), relating to

the interpretation of the specification for the amount of ground water contractually allowed to

drain into the Gautrain tunnel over a specified period of time.



This has been a complex arbitration process and this complexity is reflected in the

Arbitration Tribunal’s (“the Tribunal”) award. Overall, the Tribunal supported Province’s

interpretation of the water ingress specification.



The Tribunal ruled that, in certain parts of the Gautrain tunnel, the non-compliance with

specification could be settled through financial compensation and in other parts of the

Gautrain tunnel, additional works (as yet unspecified) will be required in order to meet this

specification. Any additional works will be carried out by the Bombela Civil Joint Venture

(“BCJV”), of which Murray & Roberts has a 45% shareholding, together with Bouygues

(45%) and SPG (10%).



The way forward will now be agreed between Bombela, BCJV and the Province.



It is important to emphasise that the Tribunal’s award specifically records that “the

functionality and safe operation of the system is not threatened by the inflow of water into the

tunnel”. Therefore all Gautrain services will continue to operate normally pending decisions

regarding the extent and nature of possible additional work, as well as other commercial

arrangements to be agreed between Bombela and the Province.



Bedfordview

27 November 2013





Sponsor: Deutsche Securities (SA) Proprietary Limited


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