The eThekwini EXCO approved the signing of an agreement between the Municipality and Tongaat Hullet Development for the funding of Phase 2 of the Blackburn link road to unlock access into the Cornubia residential and business developments. The Municipality will contribute R50m towards the completion of the project.
City Manager Sithole explained that Phase 1 of the Northern Drive Upgrade to Blackburn Link in Cornubia is already underway with the Municipality contributing R35m as part of the 60/40 split arrangement between the two parties. (Tongaat Hullets paying 60 percent and the Municipality contributing 40 percent)
He said the construction of Phase 2 was linked to an application for funding from the Jobs Fund, which was eventually declined. This has necessitated the two parties to find alternative sources of funding and signing a new agreement for Phase 2. The 60/40 arrangement will continue with this phase.
The R50m will be paid to Tongaat Hullets Development in two trenches, with R25m coming from the 2013/14 financial year and R25m from the 2014/15 financial year, to be identified from savings.
The City Manager was mandated to sign the memorandum of agreement with Tongaat Hullet Developments (Pty) Ltd to ensure the completion of critical infrastructure for the Cornubia project by way of an extension of the existing implementation mechanisms currently underway in Phase 1.
