Recent power problems have again emphasised the need for a new electrical substation in KwaDukuza to alleviate capacity pressure on the southern grid.
Progress is being made in this regard, with a new substation scheduled to come online by the end of 2025 at a cost of R256-million.
Following an initial grant application of R224-million last year, a further official loan application of R110-million was submitted so the substation’s construction can begin later this year.
Ballito is currently powered by both the Driefontein and Shakaskraal stations, each supplying specific areas.
The Shakaskraal substation is under the management of KwaDukuza municipality, while Driefontein is co-managed with Eskom.
At last month’s council meeting, questions about the funding plan were raised, specifically why council funds were needed.
“If there is a grant for R224-million coming and a loan of R110-million, why do we need to budget R110-million as a council when the cost of the station is R256-million?” asked Democratic Alliance councillor, Rishi Pooran.
Electricity business unit executive director, Sibusiso Jali, said that although they were confident about receiving the grant and loan, neither were completely certain.
“A decision was taken to budget for the potential shortfall as a council in case one did not work out. If both are received, then excess funds from the loan and council can be diverted into other capital infrastructure projects,” said Jali.
“When the grant figure of R224-million was initially calculated in 2016, it was meant to fund the project as a whole, but increases since in the prices of materials and labour have made this figure outdated.”
Jali also confirmed that the municipal infrastructure grant (MIG) funds were not applicable in this case and could not be used.
