KwaDukuza municipality is preparing to reapply for national funding to complete the long-delayed Sappi substation upgrade, crucial for powering the area’s major industries.

The upgrade, expected to cost R75.5-million, aims to strengthen the electricity supply to Sappi Stanger Mill and provide additional capacity for neighbouring industrial users, including Hesto Harnesses and Gledhow Sugar Mill.

The project was tabled at last week’s council meeting, where the municipality’s Electrical Engineering Services department sought approval to reapply for funding through the Department of Trade, Industry and Competition’s (DTIC) Critical Infrastructure Programme (CIP).

However, the meeting took an unexpected turn when executive director for electrical engineering services, Sibusiso Jali, was challenged by mayor Siduduzo Gumede on the amount owed to a contractor. Jali could not confirm the exact amount owed, prompting council to reject the report and instruct him to resubmit it with all omitted financial information included. The matter is expected to be retabled at the next meeting.

Initially approved in 2020 at a cost of R49.6-million, the project was revised in 2021 to R58.7-million to accommodate an upgrade from 3x15MVA to 3x20MVA transformers.

Although DTIC approved a R29.3-million grant under its CIP, the project was repeatedly delayed by procurement issues and non-responsive bids.

The original tender, issued in 2021, was cancelled after no suitable bids were received. A new contract was awarded to ARC Electrical in May 2023. However, the DTIC rejected a municipal request to extend the grant agreement in August 2025, citing that the original contract had already received two extensions and was no longer valid.

Jali said the Electrical Engineering Services department is now preparing a fresh application to the CIP and will submit it once council approval is obtained.

If successful, the project will proceed with the installation and commissioning of three new 20MVA transformers to replace the ageing units at the substation.

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