Durban's draft budget presented

8 December 2006

The draft budget for the eThekwini Council next year sees a six percent increase in capital spending over the past year, meaning R3,1-billion will be allocated to building Durban.

The draft budget for the 2007/08 financial year was presented at a council meeting at the International Convention Centre on Thursday. It will be adopted in April next year after public hearings scheduled for March.

The draft budget does not spell out what the increases in water, electricity and rates will be. Nor does it indicate what the total budget will be. Last year, the combined operational and capital budget was R14- billion.

Then the ruling ANC came in for flak because rates, water and electricity costs increased by 7,5 percent - almost double consumer inflation.

A key element of the draft budget is massive capital spending on the soccer World Cup between next year and 2010.

The council wants to spend R943-million to showcase the city during the event. The expense is broken down as follows:

# R190-million for the new soccer stadium;

# R150-million for the adjoining King's Park sports complex;

# R306-million for transport;

# R38-million for safety and security;

# R247-million for city beautification;

# R10-million for improving the city's tourism product;

# R12-million for improving the environmental focus; and

# R8-million on support infrastructure. The R943 -illion is but a quarter of the anticipated R4-billion total that will be spent on 2010.

The council is expecting the balance to come from national government coffers.

For example, the underground parking around the stadium will cost R600-million, but the city only wants to pay R30-million towards this.

The new people-mover tram and bus system will cost R845-million, but the city only wants to pay R52-million towards it.

Durban believes it will cost R2-billion for new bulk infrastructure (roads, storm water drainage, sewerage, electricity and water) to expand the city's northern corridor.

It has also budgeted to spend R700-million in the next three years on the Western Aqueduct, a new pipe transferring water to the Highway and Umhlanga areas.

Between now and 2016, Durban wants to spend R252-million on freight management infrastructure at the port, R136-million on tourism nodes, R382-million on re-generation of business centres, R399-million on IT projects, R613-million on the ICC, and R1,4-billion on meeting water and sanitation backlogs.

Over the same period, council wants to spend R2,4-billion on new houses and it expects the national government to spend R5,2-billion on the same. The amount of R600-million is earmarked for upgrades to state hostel and council flats.

Reacting to the draft budget, Democratic Alliance caucus leader John Steenhuisen said his party would set up a task team to examine spending in detail.

Source: IOL