MEDIA COVERAGE

All systems go for Cornubia

Phase 1 Cornubia the largest mixed-use development the private and public sector have jointly undertaken.

The Cornubia project near Umhlanga, jointly developed by Tongaat Hulett and eThekwini Municipality, is firing on all cylinders. Despite reports that the project has ground to a halt, officials from eThekwini and Tongaat Hulett indicated that is, in fact, quite the opposite.
“While there has certainly been a wrangle/dispute between the local authority and the Provincial Department of Human Settlements (PDHS) around funding and payments, there has also been substantial progress,” said Tongaat Hulett Developments executive, Karen Petersen.”
Both Tongaat Hulett an eThekwini have been working together to fast track the acquisition of development rights for both the industrial and housing components of the development.
Peterson said with the EIA reaching its final stages, a positive environment authorisation (EA) is anticipated by KZN Agriculture, Environmental Affair and Rural Developments (DAEARD) before September.
eThekwini is already in receipt of the industrial area’s Planning Development Act (PDA) application, with rezoning approval expected before the end of the year.
Last week the National, Provincial and Local municipality resolved issues around funding for both the housing and its associated infrastructure.
“As a result, a subsequent tender for the construction of 500 units and engineering services for the pilot project is being prepared and follows a recent tender for the construction an access road, “Petersen said.
As the Provincial Administration has designated Cornubia as one of the flagship housing projects for its 2011/2012 financial year, R132-million has already been set aside for the development in this current financial year, with top structures shortly thereafter.
Construction on the civil engineering serviced will start before the end of the year, with top structures shortly thereafter.
Tongaat Hulett and eThekwini are finalising a revised Business Plan which indicates the total development requires an investment of more than R4-billion for bulk infrastructure alone; the new Blackburn reservoir which will be the second largest reservoir in eThekwini, new electrical substations, upgrades to the wastewater treatment works, as well as sewers and major road upgrades and interchanges.
Despite this huge infrastructural cost, the project is expected to inject as least R17-billion of private sector investment, providing several hundred thousands of construction jobs over a 15-year period and an estimated 50 000 permanent jobs.
Substantial rates generation to the city from private sector investment is likely to exceed R300-million per annum.
Due to the shortage of well-located industrial land in close proximity to the new airport the focus remains on getting the Cornubia Industrial and Business Estate, part of Phase 1, on to the market, with sales by mid-2012 according to Petersen.

Date Added: 14 Jul 2011 | Author: Michelle Dennis