The Minister of Public Enterprises, Mr Malusi Gigaba, has expressed his concern at the cost overruns and time delays on Transnet’s New Multi-Product Pipeline.
The costs have increased substantially from the estimate of R9,5 billion in 2006, to the recently announced R23.4 billion. Furthermore the delayed delivery of the pipeline poses a risk to security of fuel supply to the inland, since the pipeline and all related infrastructure should have been completed by December 2011, as per the construction license awarded by National Energy Regulator of South Africa (NERSA).
In view of the cost overruns and time delays, the minister is in the process of commissioning a team of specialists who will look into this matter, and will make recommendations to him on the course of action to be taken to address his concerns. The minister will also shortly meet with the Chairperson and acting CEO of Transnet, to raise this matter and to ensure that the company commits fully to full delivery of the project within a revised budget and time-frames.
In future the shareholder will not tolerate any inadequate planning on the part of state-owned enterprises which would impact negatively on their ability to deliver on their respective mandates, and thus impeding the achievement of the state’s objectives.
Enquiries:
Ayanda Shezi
Cell: 079 880 2059
Source: Department of Public Enterprises
