CAPITAL BUDGET ALLOCATION TO BUSINESS UNITS

FOLLOWING the tabling of the 2024/25 draft budget at a recent Full Council meeting, eThekwini Municipality has begun the process of consulting with valued stakeholders before final adoption. The proposed budget totals R67.3 billion, comprising an operating budget of R59.7 billion and a capital budget of R7.6 billion. 

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CLEANSING AND SOLID WASTE UNIT 

BUDGET ALLOCATION OF R2.2 BILLION

In the 2024/25 draft budget, the Cleansing and Solid Waste Unit plays a vital role in maintaining healthy environments. With an operating budget of R1.9billion, including R166 million for repairs and maintenance, services are optimised for over one million households and businesses. R368 million will focus on transport assets and the Buffelsdraai Landfill and Shongweni Landfill to address refuse challenges. This allocation enables the removal of over 1.4 million tons of refuse annually, ensuring a sustainable environment. Residents can expect an 8% tariff increase, while businesses will see a 9% increase. 

ENGINEERING UNIT BUDGET 

ALLOCATION OF R3.9 BILLION

The Engineering Unit provides essential services for building and the environment, maintaining road networks, sidewalks, and stormwater systems. With an operating budget of R2.5billion, including R684 million for repairs and maintenance, the unit ensures proper infrastructure upkeep and development for the community. The capital budget of R1.4 billion. 

HUMAN SETTLEMENT UNIT BUDGET 

ALLOCATION OF R1.45 BILLION

The Human Settlements Unit oversees the delivery of new housing units and the management of hostels and rental stock. With a total budget of R1.45billion, including an operating budget of R631.2 million and a capital budget of R825 million, the unit aims to construct 1 638 new houses in the 2024/2025 financial year despite rising construction costs. 

COMMUNITY AND EMERGENCY 

CLUSTER BUDGET ALLOCATION OF R7.4BILLION

The Community and Emergency Services Department oversees health, parks, recreation, and safety services, managing numerous facilities and amenities. With an operating budget of R6.7 billion, the service has a significant staff complement, with staff costs being a major budget driver. Additionally, there is a provision of R153 million for repairs and maintenance to ensure proper upkeep of infrastructure, including swimming pools, within the department's purview. The capital budget of R714 million. 

ETHEKWINI TRANSPORT AUTHORITY 

BUDGET ALLOCATION OF R2.3BILLION

The eThekwini Transport Agency (ETA) oversees public transport operations in the City, managing bus shelters, taxi ranks, and bus stations. With an operating budget of R1.56 billion and a capital budget of R754.9 million, the ETA also provides for Durban Transport and the People Mover system. The capital budget allocation will be directed towards traffic calming measures, the Bridge City terminal, intelligent transport systems, an integrated fare management system, and the Go!Durban IRPTN initiative. 

ECONOMIC DEVELOPMENT 

BUDGET ALLOCATION OF 

R2.1 BILLION

The increased investment in infrastructure aims to create a conducive environment for business, attracting new investors and fostering economic development. The focus remains on strategic township development, town centre renewals industrial upgrades, tourism enhancement, sector support programmes, and LED initiatives such as ICT and Renewable Energy technologies. Additionally, R728 million is earmarked for catalytic projects. 

JOB CREATION PROJECTS 

While progress has been made, there is a continued commitment to job creation, focusing on youth development. This includes initiatives like the Sihlanzimvelo Steam Cleaning Programme creating over 840 jobs, the Zibambele Programme generating over 7 300 jobs, and 450 job opportunities at the Moses Mabhida Stadium's events. There are 2 600 beneficiaries from the Presidential Employment stimulus, 264 cooperatives for verges grass cutting, and 167 caretakers employed at ablution facilities. Around 1 584 plumbers are employed on a rotational basis with 466 community-based contractors employing  1 398 individuals and 475 community-based contractors working on rural water and sanitation projects. A further 887 people are employed by the Cleansing and Solid Waste Unit under the Expanded Public Works Programme grant, with funding of R60.8 million paying individuals at a rate of R100 per day (R50 per day subsidised by National Treasury). The Soup Kitchens programme currently serves approximately 550 beneficiaries per day at each site, with a total of 87 operational sites. 

While progress has been made, efforts will be increased by expanding to 94 sites in 2024/2025. The operating budget for this programme in 2024/2025 amounts to R137 million, allocated for purchasing groceries, gas, and stipends. 

Volunteers are engaged to manage the sites and receive a stipend to cover travel and living expenses. 

MAJOR CAPITAL PROGRAMMES

Major capital projects over the 2024/2025 Medium-Term Revenue and Expenditure Framework to improve service delivery, building a conducive environment for economic development, and rehabilitation of infrastructure are the following: 

• Wastewater Treatment Works Upgrades/Expansion: R2.4 billion 
• Low-cost Housing and Infrastructure: R2.5 billion
• EThekwini Transport Authority (including PTIS): R2.3 billion 
• Replacement of Bus Fleet: R298 million 
• Electricity Infrastructure: R2.1 billion 
• Addressing Community Service Backlogs: R2.3 billion 
• Roads Rehabilitation and Reconstruction and New Access Roads: R1.7 billion 
• Zonal Planning: R338 million 
• Water loss Intervention Programme and Replacement of Water Pipes R3 billion 
• R728 million for Catalytic Projects which are critical in bringing the Foreign Direct Investment to the City

EThekwini Municipality Invests in Bulk Infrastructure for Westown

 

By Fred Felton | Apr. 24, 2024.

There is just under a year to go before the official opening of Westown Square, a clear sign that the new 100ha ‘City of the West’ is going ahead as planned.

JSE listed Balwin Properties signed lease agreement with Fundamentum Property Group to develop a R2bn eco estate as part of the Shongweni Development. | Photo: Thuli Dlamini. 

EThekwini Mayor Councillor Mxolisi Kaunda was on-site at the development along with development partners, Fundamentum Property Group (FPG) and Balwin Properties (BP) on 18 April 2024 to see the progress of Westown Square. This comes after the City had invested R600 million in bulk infrastructure in the region.

Mayor Kaunda was also witness to the signing of a R2 billion agreement between FPG and BP for an eco-estate residential development. ‘’This investment will yield huge returns for the City,’’ said Mayor Kaunda.

This 15-year strategic catalytic Shongweni Urban Development consists of nine mixed-use precincts. ‘’We are excited that this is going to be the first real Smart City in the province and will make eThekwini a world-class City,’’ noted Mayor Kaunda.

Carlos Correia, CEO of Fundamentum Property Group explains how far the development has come to the city delegation. | Photo: Thuli Dlamini. 

There have been 1 000 people, mainly from the area and surrounds, that have been hired for the construction and bulk infrastructure and Westown Square.

According to Steve Brookes, CEO of Balwin Properties approximately 8 000 jobs are expected to be created during the construction phase of the Shongweni Eco Park with around 500 permanent jobs to be created on completion. 

Construction on the Westown Square retail experience is on course for completion in March 2025. | Photo: Fred Felton. 

There will also be infrastructure upgrades which include two new bridges and a total make-over of the existing two-lane Kassier Road across the M13 and N3 into four lanes with a centre median. The M13 bridge will be rebuilt and a new pedestrian bridge is being added over the N3 along with a new loop ramp and bridge over Kassier Road providing direct access into Westown.

There has also been a R1.4 billion investment that has been triggered through the investment by Fundamentum with Absa Commercial and Investment Bank’s backing the 50 000m² Westown retail experience. ‘’This investment was cemented as Balwin signed a formal agreement with Fundamentum for their 1 260-apartment lifestyle estate, that will comprise of 20 phases, to be built over the next few years and is due to launch later this year,’’ said Carlos Correia, CEO of Fundamentum.

MSC Virtuosa Visits Durban

 

By Fred Felton | Apr. 17, 2024

This month I was invited to a very special visit by the MSC Virtuosa which visited Durban briefly for a crest exchange ceremony with The Master of the ship and local government authorities. The ceremony was done in the presence of MSC Cruises Top Management.

MSC Virtuosa visited Durban recently. | Photo: Fred Felton

‘’The MSC Virtuosa is the largest passenger cruise ship to arrive in Durban,’’ said said Ross Volk, MD of MSC Cruises.

He also mentioned that the ship has far less emissions. Volk also noted that MSC is planning to put 5000 South Africans on their ships as part of the workforce.

Crest Exchange on board the MSC Virtuosa with Ross Volk, MD of MSC Cruises, MSC Crew and local authorities. | Photo: Fred Felton 

This cruise ship has a wide variety of features which will keep many passengers entertained for days on end. The ship features the Galleria Virtuosa which is like an indoor shopping mall with an interactive ceiling display.

Galleria Virtuosa. | Photo: Fred Felton

You can also enjoy live entertainment, shows, and the children can get hours of entertainment at the kids club which features LEGO activities.

The MSC Virtuosa has 5 unique pools for guests and even a waterpark at sea. There are plenty of restaurants, coffee shops, bars, a casino and of course MSC Yacht Club.

One of the cabins on board MSC Virtuosa | Photo: Fred Felton 

Cabins include luxury suites, a duplex and balcony options for those that enjoy a view. You can also find a Robot Bar on the ship which features a robot that makes your drinks for you. 

Dazzling staircase. | Photo: Fred Felton 

I sat down with Ross Volk to hear about what is coming up for MSC Cruises in South Africa this year:

What is a crest exchange ceremony?

‘’In years gone by from a maritime perspective people didn’t know if you were friend or foe coming in on a sail ship. So the crest exchange is a symbolism of arriving in a port as a gesture of goodwill and welcoming, the port hands over a crest to the ship and the ship hands over a crest to the port to show that the vessel has called and they come in peace and it’s all about camaraderie and the maritime tradition.’’

Can you tell us what MSC Cruise Ships are expected this year?

‘’MSC Musica will be our permanent vessel for the season, starting Mid-November through to Mid-April again Cape Town, Durban but the majority Durban. So about 80% of the calls are out of Durban and 20% out of Cape Town, from an MSC perspective it’s a little early to tell but hopefully we will have one or two other vessels calling in 2025.’’

What is the capacity of MSC Musica?

‘’MSC Musica  has a maximum capacity of 3200.’’

For more information on the MSC Virtuosa visit www.msccruises.co.za