The South African construction market is being affected by delays in contract awards, particularly in the public sector, JSE-lised construction group Aveng said on Friday.

However, in a statement it said its subsidiary Grinaker-LTA had won a R350-million contract to build the Mitchells Plain Hospital in the Western Cape.

It had also won the work on the chimneys and silos for the Medupi Power Station in joint venture, with its share of the contract valued at R320-million.

The group was also granted an extension of its contract at the Two Rivers Platinum Mine in Steelpoort valued at R360-million, Aveng said.

Its surface mining company Moolmans had secured an opencast gold mining contract with a two-year term at Sadiola in Mali.

Aveng said its Australian-based company McConnell Dowell had recently been awarded several contracts including a R420-million contract for the construction of marine facilities on the Sino Iron Project in Hong Kong and the Singapore International Cruise Terminal on Jurong Island.

"Notwithstanding the tight market conditions, the group's two year order book at 30 September 2009 increased to R31.3-billion compared to R30.4-billion at 30 June 2009," Aveng said.

It said it continued to pursue opportunities in its total project pipeline which remained stable at R100-billion.

Volumes in the manufacturing and processing cluster had stabilised while average steel prices had risen by some 10 percent, the company said.

The continued relative strength of the rand against other currencies was of concern and would negatively affect foreign earnings when translated to rand, particularly with McConnell Dowell and Moolmans, Aveng said.

Sapa

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