TZANEEN – The much-anticipated R3 billion Dan City development is taking shape, with plans now underway for the project to build its own electricity substation.

This emerged during a meeting between the Greater Tzaneen Municipality (GTM) political management team and executive committee (exco), acting municipal manager Freedom Mthethwa, electrical director Bongi-Nkosi Sengwayo, the chief financial officer, and representatives of McCormick Property, led by Dan City Mall project manager Ruan van Rensburg.

Van Rensburg requested the meeting, which was chaired by GTM Mayor Odas Ngobeni, to find a workable agreement on the costs associated with the proposed substation.

“We are building the substation on our own property and providing free infrastructure to the municipality, which will still sell electricity to the community. We want to understand how we can do all of that and still be required to pay a bulk contribution fee,” he said.

Options outlined

Mthethwa outlined the options available to the developer, including building its own substation or allowing the municipality to construct one, with different costs attached to each option.

He explained that even if McCormick opted for the municipality to build the substation, the developer would not necessarily benefit financially, as the contribution fee remains necessary.

“When we invest, we invest for the future. We have to ask how we are going to recoup the R100 million we borrowed from the Development Bank of Southern Africa. We also need to ensure that we recover the costs per MVA,” Mthethwa said.

Costs and reimbursement

Sengwayo went through the figures with Van Rensburg, and both parties appeared satisfied with the costs and the arrangements that would allow the developer to be reimbursed for its contribution.

The exco stressed the need for the municipality and developer to work swiftly together, saying the sooner the substation is completed and operational, the sooner construction of the mall can progress and employment opportunities can be created for the Tzaneen community.

Jobs expected

Van Rensburg said between 1 500 and 1 800 people are expected to be employed during the construction phase, while about 2 500 jobs are anticipated once the mall becomes operational.

The development is expected to include major retail outlets such as Boxer, Spar and Shoprite, as well as all major banks. Plans also include a filling station, residential development and a clinic.

Water remains a challenge

However, Van Rensburg said limited water availability remains a challenge for the project. The development currently relies on boreholes, which restricts how extensively the project can expand.

Municipality commits support

Ngobeni reaffirmed the municipality’s commitment to supporting the development and said his office remains available to assist where necessary. He also undertook to escalate the water-supply challenge to the Mopani District Municipality for further assistance.