{"id":12089,"date":"2026-07-14T03:04:42","date_gmt":"2026-07-14T03:04:42","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=12089"},"modified":"2026-07-14T03:04:42","modified_gmt":"2026-07-14T03:04:42","slug":"kzn-capitals-r1-2bn-public-transport-flop","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=12089","title":{"rendered":"KZN capital\u2019s R1.2bn public transport flop"},"content":{"rendered":"

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The Msunduzi Local Municipality in Pietermaritzburg \u2013 KwaZulu-Natal\u2019s capital city \u2013 has spent R1.18 billion on a new public transport network that is still not operational.<\/p>\n

It started planning the project 15 years ago, but it has not moved beyond the first phase of construction.<\/p>\n

Entrances to dedicated bus and taxi lanes are blocked by cement barriers, with none of these routes being used by buses or taxis.<\/p>\n

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In 2011, the municipality started receiving a new grant from the National Department of Transport \u2013 the Public Transport Network Grant \u2013 to restructure its public transport system and connect Pietermaritzburg to surrounding areas such as Edendale and Imbali.<\/p>\n

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The project was to include a 17km corridor for buses and taxis between Georgetown and Edendale in the west and Raisethorpe in the east.<\/p>\n<\/blockquote>\n

Nine transport depots as well as a transport management centre were supposed to be built.<\/p>\n

Construction of the first phase started in 2015. A 4.8km public transport corridor was built along Moses Mabhida Road \u2013 the main road between Pietermaritzburg and Imbali and Edendale, the municipality\u2019s two largest townships. This was completed in 2022.<\/p>\n

The first phase also included construction on four additional bus routes, a transport depot, a station, and \u201cnon-motorised transport facilities\u201d. It is unclear whether these were completed.<\/p>\n

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Five more stages of construction were meant to follow.<\/p>\n

The municipality\u2019s 2021\/22 annual report attributed delays to the relocation of houses, community objections, disagreements over electricity infrastructure relocations by Eskom, and contractual disputes with contractors.<\/p>\n

When GroundUp visited Edendale in June, large sections of the bus lanes running through the middle of Moses Mabhida Road appeared to be finished, but the entrances to the route were blocked by cement barriers. Grass had begun to break through the asphalt. Rubble and rubbish were strewn along many parts of the bus route.<\/p>\n

Underspending and delays<\/strong><\/p>\n

The planning for the project took place between 2011 and 2015, at a cost of R231 million.<\/p>\n

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Between 2015 and 2022, the municipality was allocated a further R1.18 billion for construction, but failed each year to spend the budget; R950 million was spent, and R229 million was returned to National Treasury.<\/p>\n<\/blockquote>\n

In 2019, the underspending led National Treasury to reduce the grant by R78 million. In 2020, the municipality was informed that the grant would be suspended. The municipality received two more years of reduced grant payments, in 2021 and 2022, before payments stopped completely.<\/p>\n

In its 2022\/23 annual report, the municipality said the transport system can only become operational once the grant is reinstated.<\/p>\n

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The grant was reinstated in 2024\/25, and the municipality received R50 million. But it only spent R5 million. The system did not become operational.<\/p>\n

Municipal spokesperson Ntobeko Mkhize confirmed that no major construction activities on the project have taken place since 2022.<\/p>\n

In its 2024\/25 annual report, the municipality said its current focus is to get the first phase operational before construction on further phases can begin.<\/p>\n

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Taxis still use the main road from Edendale to Pietermaritzburg, while the dedicated bus and taxi lane stands abandoned. Image: Joseph Bracken\/GroundUp<\/p>\n<\/div>\n

Mkhize said the original plan cannot be implemented because changes in the structure of the grant means new transit systems may no longer be expanded.<\/p>\n

This follows a decision by national government to phase out funding for rapid transit network projects nationally, because most municipalities have failed to properly implement the grant.<\/p>\n

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The existing infrastructure will be \u201crepurposed\u201d and \u201cintegrated\u201d into the existing road network \u201cto improve traffic flow, reduce congestion, and continue to prioritise public transport where feasible\u201d, said Mkhize.<\/p>\n

There is also insufficient funding to sustain long-term financial commitments, such as procuring new buses or compensating the minibus taxi industry, said Mkhize.<\/p>\n

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Anthony Waldhausen, chair of the Msunduzi Association of Residents, Ratepayers and Civics, said the municipality has a track record of underspending and failing to complete large projects.<\/p>\n<\/blockquote>\n

\u201cThe municipality is notorious for not spending large grants and, at times, has returned large amounts of grants to the Treasury as they weren\u2019t able to meet the deadlines,\u201d he said.<\/p>\n

Waldhausen said inexperienced municipal staff did not properly engage with the Department of Transport or National Treasury for project management support.<\/p>\n

\u201cNational Treasury needs to monitor the implementation of the project closely to ensure that \u2026 there isn\u2019t any irregular and wasteful expenditure of the project,\u201d said Waldhausen.<\/p>\n

\u00a9 2026 GroundUp. This article was first published here.<\/p>\n<\/p><\/div>\n

#KZN #capitals #R1.2bn #public #transport #flop<\/p>\n","protected":false},"excerpt":{"rendered":"

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