Transnet fuel pipeline: Way over budget and far from finished

Public Enterprises Minister, Malusi Gigaba, has confirmed in a reply to a Parliament that Transnet’s new pipeline between Durban and Gauteng will miss its December 2013 completion deadline.

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The pipeline project has been marred in controversy due to repeated delays and cost escalations.

The initial cost of the project was estimated at R11.1 billion in 2008, but this quickly escalated to R15.4 billion in 2009, and is now currently at R23.4 billion.

With R19.3 billion already spent and more delays ahead, every possible action should be taken to prevent the Transnet pipeline becoming a ‘Medupi 2’.

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The National Energy Regulator of South Africa (Nersa) is currently investigating the delays and cost escalations at the pipeline and the Democratic Alliance has requested that their findings be tabled in Parliament.

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South Africans do not deserve empty promises, delays and higher costs whenever a major infrastructure project is undertaken.

This is especially true for energy related projects which can help power South Africa, grow the economy and create jobs.

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