Incomplete and Unused Projects Costing the City Billions and Hindering Service Delivery to Residents and Businesses
Press Statement by Mpumi Edward
ActionSA S79 CoJ Finance Chairperson
The City of Johannesburg faces significant financial and social challenges due to numerous infrastructure projects that remain incomplete or unused such as the Johannesburg International Transport Interchange (JITI). These stalled initiatives not only represent substantial financial losses but also hinder service delivery and economic growth in the City.
Rea Vaya Bus Rapid Transit System, initiated in 2006, was envisioned to transform urban mobility in Johannesburg. Despite an expenditure exceeding R10 billion by the end of 2017, the project remains incomplete, with Phase 1C particularly delayed. Originally slated for completion in 2017, this phase has seen over R1.5 billion spent without becoming operational. Factors contributing to these delays include protracted negotiations with taxi associations, construction challenges, and political instability within the city council.
The Braamfischerville road upgrade is another project that exemplifies financial mismanagement.
With R94 million allocated for the enhancement of a 13km stretch road, the project remains incomplete. The first contractor completed only 6km before termination due to poor performance, costing over R63 million. A subsequent contractor managed just 3km before their contract was terminated, adding another R30 million to the expenditure. An additional R23.5 million is now required to rectify damages and complete the project.
The prolonged construction on Lilian Ngoyi Street has led to escalating costs and significant disruptions. Extended timelines not only inflate expenses due to factors like inflation and additional labour but also adversely affect local businesses and residents. Such delays underscore the necessity for stringent project management and accountability
These cases highlight the critical need for robust contract management and oversight. Effective supervision ensures that contractors adhere to timelines, budgets, and quality standards, thereby safeguarding public funds and ensuring timely service delivery. Implementing stringent monitoring mechanisms and holding contractors accountable for non-performance are imperative to prevent such financial losses and service delivery failures.
Incomplete and Unused Projects Costing the City Billions and Hindering Service Delivery to Residents and Businesses
The City of Johannesburg faces significant financial and social challenges due to numerous infrastructure projects that remain incomplete or unused such as the Johannesburg International Transport Interchange (JITI). These stalled initiatives not only represent substantial financial losses but also hinder service delivery and economic growth in the City.
Rea Vaya Bus Rapid Transit System, initiated in 2006, was envisioned to transform urban mobility in Johannesburg. Despite an expenditure exceeding R10 billion by the end of 2017, the project remains incomplete, with Phase 1C particularly delayed. Originally slated for completion in 2017, this phase has seen over R1.5 billion spent without becoming operational. Factors contributing to these delays include protracted negotiations with taxi associations, construction challenges, and political instability within the city council.
The Braamfischerville road upgrade is another project that exemplifies financial mismanagement.
With R94 million allocated for the enhancement of a 13km stretch road, the project remains incomplete. The first contractor completed only 6km before termination due to poor performance, costing over R63 million. A subsequent contractor managed just 3km before their contract was terminated, adding another R30 million to the expenditure. An additional R23.5 million is now required to rectify damages and complete the project.
The prolonged construction on Lilian Ngoyi Street has led to escalating costs and significant disruptions. Extended timelines not only inflate expenses due to factors like inflation and additional labour but also adversely affect local businesses and residents. Such delays underscore the necessity for stringent project management and accountability
These cases highlight the critical need for robust contract management and oversight. Effective supervision ensures that contractors adhere to timelines, budgets, and quality standards, thereby safeguarding public funds and ensuring timely service delivery. Implementing stringent monitoring mechanisms and holding contractors accountable for non-performance are imperative to prevent such financial losses and service delivery failures.