Hard newsNewsNews

Billions needed before two government projects can get off the ground

The millions already spent may go to waste if private investment is not found.

MBOMBELA – A planned cultural hub, and high-altitude training centre, aimed at boosting the province’s image and estimated to cost R5 billion each, may never materialise due to a severe lack of funds. Unless private investors bail out provincial government, these two vanity projects will remain a dream on paper.

This was according to the response by MEC for culture, sports and recreation, Ms Norah Mahlangu-Mabena, to written questions posed by the DA at the end of April.

The Heritage Portal, a discussion, education and marketing platform, gives the location for the cultural hub as plot 56/64 on the R538 outside White River.

A visit to the site by Lowvelder revealed tall grass and little else. According to the MEC’s answers, the 20,9 hectare piece of land was purchased for R12,9 million in the 2012/13 financial year.

Her breakdown of expenditure further indicated that up to now, a total of R114,5 million had been spent on architects, civil engineers and quantity surveyors. The land survey, outline drawings, cost-management plans, geotechnical investigations and a basic environmental impact assessment had been completed.

The construction contract for the cultural and creative industry hub comprising a theatre, exhibition centre, cinema, parking lot, fencing and bulk civil and electrical supply, was first advertised in August 2014 under bid number PWRT/2107/14/MP. The closing date had been extended numerous times, most recently to February 27.

“The bids could not be finalised due to insufficient funds for the project,” noted the department noted. “The professional team was asked to scale down the construction of phase one from R2,7 billion to R600 million. The project had since escalated into a public/private partnership.” It was projected to be completed in 2018/19.

The high-altitude training centre planned in eMakhazeni was projected to cost R5,2 billion. A total of R57,8 million had been spent on architectural services, land, studies, surveys and infrastructure, according to the MEC’s reply.

The department’s annual performance plan (APP) for 2015/16 showed expenditure in previous years totalling R85,8 million
from the department’s cultural-affairs programme budget on the cultural hub, and R61,5 million from the department’s sport and recreation budget on the training centre.

These totals were omitted from the amended APP, which showed both projects were projected to be completed by the close of the 2017/2018 financial year.

Mr Anthony Benadie, DA MPL and the party’s spokesman for sports and recreation called for an investigation into the province’s spending priorities.

“Massive projects are being embarked upon that are not service-delivery infrastructure. Like the Provincial Archives building that is not being used.

“Think about the money that has been spent but there is still nothing. Aside from the International Fresh Produce Market, none of these projects are related to direct service delivery.” Premier Mr David Mabuza recently returned from an investment-seeking trip to Italy.

He announced a loan totalling about R10 billion from Sace for hospital and school infrastructure this week (see story on page 6). Upon enquiry, his spokesman Mr Zibonele Mncwango said he didn’t know if any private funding was available for the cultural hub and training centre. “Our priorities are hospitals and schools and a dam.”

He referred the newspaper to the Mpumalanga Economic Growth Agency’s investment brochure, which was presented to potential investors. Neither the cultural hub nor training centre were mentioned in the booklet titled, Mpumalanga province your investment destination.

Lowvelder started asking DCSR questions about the cultural hub and high-altitude training centre on April 21. To date, the department had not responded to any questions, despite verbal assurances that they would do so.

At Caxton, every story is written by humans. We use AI only to perform quality checks - never to generate the news. Happy reading!

Support local journalism

Add The Citizen as a preferred source to see more from Lowvelder in Google News and Top Stories.

Back to top button