The Mandela Bay Development Agency has passed the first hurdle to start five strategic projects worth R5.2m through a programme and project preparation support grant funded by the National Treasury.
The National Treasury approved R15m through the support grant for the 2024/2025 financial year.
However, as of 2023, the agency could not start due to its service delivery agreement (SDA) with the metro needing to be amended and signed off.
On December 7 2023, the council resolved that the addendum be approved for the implementation of projects.
The change would be valid until the SDA expiry on July 4 2025.
A report by corporate services executive director Nosipho Xhego, tabled at an economic development, tourism and agriculture committee meeting on Friday, revealed the addendum had yet to be signed.
“As at June 2024, the addendum between the municipality and MBDA had not been concluded and signed, and as such the implementation of the project funding by the MBDA could not be processed within the 2023/2024 financial year.”
This financial year, the agency has set its sights on bigger projects, including:
- A feasibility study and concept design for the Feather Market Centre (R1.5m);
- A feasibility study and concept design for a Kariega precinct (R1m);
- New Brighton Heritage Route feasibility study and business plan (R1.5m);
- Baakens Valley mixed-use housing project feasibility study (R1m); and
- Aquarium project feasibility study and business plan (R281,350)
No debate took place on the report.
The implementation of the projects still requires approval from the mayoral committee, followed by final endorsement by the council.
If approved by the council and the addendum signed, invoices for the projects will be processed by the metro’s economic development department after the submission of a portfolio of evidence by the MBDA.
“The grant cannot be transferred to the MBDA, it is suggested that an addendum be prepared to the SDA in which the responsibility for the project implementation is transferred to the MBDA,” Xhego said in the report.
According to the report, concept development and investigation will be conducted for potential projects along the New Brighton Heritage Route.
Central Kariega’s mixed-use precinct will encompass sports facilities, housing, retail spaces, an incubator and a market area.
The development will include a comprehensive business plan outlining operating models and funding opportunities.
Additionally, a concept development, pre-feasibility study, and precinct plan, with an estimated cost of R600,000, will be undertaken for this mixed-use initiative.
A condition assessment and business plan for the Feather Market Centre will encompass design, cost estimate and the development of an operating model.
Development of a tourism product in New Brighton will be by activating land and underused buildings.
In the Baakens Valley, the development of vacant heritage land into a mixed-model housing precinct is being explored.
The aquarium project aims to create a new oceanarium, live animal sanctuary and associated infrastructure for the broader Bayworld programme.
MBDA spokesperson Luvuyo Bangazi said the support grant was a conditional funding mechanism designed to help metros develop a pipeline of investment-ready capital programmes and projects.
“The lack of signing meant we could not start any work.”
He said the projects could have been investment ready by now.
“However, the MBDA has since readjusted plans to get these initiatives fast-tracked as soon as the necessary service level agreements are in place.
“We have, through our new five-year strategy and structure, created a focused and dedicated team on project planning and preparation to do exactly that, to get a pipeline of investment-ready projects to stimulate the economy.”
HeraldLIVE
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