Austerville electricity upgrades funds face redirection
The committee recommended the reallocation of savings identified within the approved capital budget for the 2026/2027 financial year.
FUNDS earmarked for upgrades to the Austerville Substation and Austerville Link could be redirected after delays threatened to prevent the electricity projects from meeting their spending targets for the 2026/2027 financial year.
A total saving of more than R57m will be redirected to projects requiring additional funding.
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The Electricity and Energy Directorate attributed the delays to procurement challenges, lengthy equipment lead times, project dependencies and operational challenges on site.
This emerged during the Trading Services Committee at its monthly meeting at Durban City Hall on September 17.
The committee recommended the reallocation of savings identified within the approved capital budget for the Electricity and Energy Unit for the 2026/2027 financial year.
The Electricity and Energy Directorate highlighted that expenditure on specific capital projects might not reach planned targets within the current financial year.
“This is due to procurement delays, extended lead times for critical equipment, project dependencies, and revised implementation schedules resulting from operational challenges on site. Projects from which funds will be redirected include the Austerville Link, Klaarwater-Hillcrest T1-T19, Austerville substation, Hillcrest, Stockville, Mahogany, and Phoenix North projects,” said eThekwini Municipality.
Reallocating these available funds will support the completion of projects currently at an advanced stage that require additional financial resources.
Furthermore, several other projects experienced unforeseen commissioning delays primarily caused by primary plant faults and the integration of existing equipment onto new systems.
The proposed reallocation and transfer of funds adhere fully to the provisions of the Local Government: Municipal Finance Management Act.
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