Big Gautrain win for Glenrand MIB
In a significant "win" in the insurance sector, Glenrand M∙I∙B has confirmed its appointment as the South African insurance brokers to the Bombela Concessionaire for the multi-billion-Rand Gautrain Rapid Rail Link Project.
The consortium includes Murray & Roberts, Bouygues Travaux Publics of France, Bombardier Transportation of Canada and the Strategic Partners Group of South Africa. The operator will be RATP of France.
Glenrand M∙I∙B's appointment involves both the construction and operational phases of the project, extending over nearly two decades.
In succeeding with its bid, Glenrand M∙I∙B drew upon its expertise in the construction insurance field, as well as its strong BEE credentials and its experience as brokers and advisors on similar concession contracts, notably the Trans African Concessions (TRAC), the concessionaire for the N4 Maputo Corridor Toll Highway.
Gautrain's Project's insurance initially included the Enabling Works, covering the relocation of services and road diversions to prepare the "ground work" as it were for the project, and the Advanced Works contract to enable a section to open in time for the Soccer World Cup. The Development phase insurances for the entire project has recently been placed through local and international markets.
The insured amount of the construction work makes Gautrain the largest rapid rail project currently under construction anywhere in the world, says Brian Thompson, Executive Director, Glenrand M∙I∙B Special Projects Division.
Numerous complex elements are involved in the covers, notably the construction of tunnels, viaducts in dolomitic areas and complex station designs, both underground and on viaducts, while also taking into account stringent safety, environmental and other local and international codes of practice.
The design and placement of the insurances also involved a major liaison process with the concessionaire, contractors, operators, lenders and their advisors.
Numerous types of specifically designed covers are involved, all of which have to be dovetailed seamlessly to present a complete insurance solution, including Contractors All Risks, Delay in Start Up, Contracting Liability and Professional Indemnity, to name but a few.
Both local and international underwriters and reinsurers are involved in the insurance covers.
"Glenrand M∙I∙B not only has considerable experience in dealing with insurances for principals and contractors, but has in recent times acted as brokers and advisers on large concession projects involving both development and operational insurances, including the interests and requirements of lenders.
"We are well placed to meet the further needs in respect of the upturn in the construction industry, including the insurance expertise needed for these contracts" added Thompson.
