R400m to be paid for Gateway project
Although its lofty ideals have long since been abandoned, the national Department of Human Settlements will pay around R400 million this year for the controversial N2 Gateway project.
Human Settlements Minister Tokyo Sexwale was responding to a question in the National Assembly from the ANC's Ben Turok on the cost of the pilot project.
The N2 Gateway was initially managed by all three levels of government but when the DA took over the City of Cape Town in 2006, cracks in the three-tier partnership emerged.
The city council was removed from the pilot project that year and Thubelisha Homes was appointed as developer.
The national government wanted to build 22 000 housing units. By April 2009, only 11 837 of the first phase's 15 000 units were complete.
Sexwale has previously said it would cost more than R1.5 billion to finish the project.
The Human Settlements Ministry had given the Western Cape government R1.1bn in 2007/08, R1.3bn in 2008/09 and R1.5bn in grant funding. These grants were for the building of houses |and bulk infrastructure from 2007 onwards.
Sexwale, in his answer also stated that special funding had been provided for the N2 Gateway - in 2007/08, R200 m; in 2008/09, R300m and in 2009/10, R400m.
The special funding was only spent up to the 2008/09 financial year. Of the R400m "ring-fenced" for 2009/10, the province could not spend R69m "due to challenges experienced by the provincial government on closing down Thubelisha and contractors not being paid".
Human Settlements MEC Bonginkosi Madikizela confirmed this, saying his department was engaged in mediation with the Buyile consortium over issues related to "reconciliation" following the closure of Thubelisha last year.
Sexwale said an application had been submitted to the Western Cape and national treasuries to roll over the money which would remain unspent in 2010/11.
Sexwale has said it would cost in excess of R1.5bn to finish the project.
Cape Times
Posted at 08:05AM Sep 03, 2010 by Editor in Cities and Towns |