Upon receiving legal advice, the City of Cape Town's city manager Lungelo Mbandazayo has taken the decision to cancel the Request for Proposals (RFP) for the development of the Foreshore Freeway Precinct.
The six bidders were notified of the decision in writing on Friday, 13 July.
The stage one bid evaluation process was concluded in February 2018. Several appeals and objections were lodged that contested the application of the evaluation criteria as set out in the RFP documentation. Having received legal advice, the city concluded that a lack of sufficient clarity in the RFP documentation rendered the evaluation criteria vague.
Weak economic outlook
"Procurement processes must be compliant with the rule of law, in particular with Section 217 of the Constitution which governs public procurement. There must be no doubt about the integrity of these processes and, as such, I have decided to cancel the RFP.
"Furthermore, the economic outlook for the country has become significantly weaker since the issuing of the RFP two years ago. This change, together with the additional burdens that the city, its ratepayers, and residents are facing at the moment, cannot be ignored. The city is, therefore, reconsidering the future of this project, and we will communicate further once a decision has been made.
"In the meantime, I want to express my sincere gratitude to all of the bidders who submitted proposals and representations," said Mbandazayo.